N362.5bn SUKUK Funds Over 1,900km Road Nationwide — Fashola

The Federal Government of Nigeria has said its decision to leverage SUKUK financing for critical national road infrastructure has yielded impressive outcomes since 2017.

Minister of Works and Housing, Babatunde Fashola, said this, at the symbolic presentation of the 2021 SUKUK cheque of N250bn to beneficiary ministries for infrastructural developments.

Fashola who said this in a statement issued by the Ministry shed more light on the funds accessed and utilized on roads nationwide.

The statement signed by Director, Press and Public Relations, Boade Akinola, said the funds had boosted road infrastructure in Nigeria.

The statement read in part: “from the first SUKUK funds of N100 billion, released in 2017, 25 roads, covering 482 kilometres length were delivered.

“The second SUKUK of 2018 had 28 roads covering 643 kilometres length delivered, while the third SUKUK funds of N162 billion covered 44 highway and bridge projects, with the total length of 757 kilometres covered across the nation.

SUKUK financing has enhanced completion of some priority road and bridge projects across the country which includes: the completion of 296 KM Sokoto-Tambuwal-Jega-Yawuri in Sokoto and Kebbi States, completion of 142 KM Section II (Shuwarin – Azare ) of Kano-Maiduguri road, completion of 106 KM Section III (Azare- Potiskum) of the Kano-Maiduguri road and the completion of 1.2 kilometre/360m length Ikom Bridge.

“Another thing to take home is that debt properly used can galvanize the economy. It is that debt instrument that serves so many people from diverse parts of Nigeria here today,”

The statement also noted that the Minister of Finance and National Planning, Zainab Ahmed listed the three federal government agencies as beneficiaries of the N250bn and the monies allocated to each, for infrastructure development.

It reads: ” listed the three beneficiary ministries of the N250 billion 2021 SUKUK and the amount allocated each thus: Federal Ministry of Works and Housing (N210 billion), Ministry of Federal Capital Territory (N29 billion) and Ministry of Niger Delta Affairs (N10 billion).

“Mrs. Ahmed disclosed that so far from 2017 to date the total SUKUK funds issued to the Federal Ministry of Works and Housing was N362.577 billion.”

Ahmed noted that “this was the amount the Debt Management Office issued on behalf of the Federal Government for the funding of key road projects through SUKUK” in Nigeria.

According to her, ” government has given priority to capital expenditure in spendings in order to sustain the momentum of the economy.

In her remarks, the Director-General of the Debt Management Office (DMO), Mrs Patience Oniha, said that presentation of the N250 billion SUKUK cheque to the three ministries was in line with President Muhammadu Buhari administration as strategic objectives of the development of infrastructure.