Nigerian govt details use of N613bn Sukuk loan on infrastructure in four years

The Nigerian government has explained how N612.56 billion through Sovereign Sukuk between 2017 and 2021 was used for infrastructural developments in the country.

Minister of Finance, Budget and National Planning, Zainab Ahmed, made this known at the symbolic cheque presentation ceremony of the 2022 Sovereign Sukuk Issue proceeds of N130 billion to the Ministry of Works and Housing and the Federal Capital Territory Administration held in Abuja on Monday.

Zainab noted that no fewer than 71 road projects and four bridges were taken care of by Works and Housing Ministry while six road projects and 19 bridges were handled by the FCTA.

The minister noted that the N130 billion raised from Sukuk issued in 2022 will be distributed between both ministries.

She added that as of November 2022, N1.88 trillion had been released as Capital Expenditure, when compared to the total Capital Budget of N4.7 trillion.

The minister said: “This administration has invested the sum of N612.557bn raised through sovereign sukuk between 2017 and 2021 for the construction and rehabilitation of key economic road projects in the six geo-political zones and the Federal Capital Territory.

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“In real terms, the amount has been used to construct and rehabilitate sections of 71 road projects covering 2,808.06 kilometers and four bridges by the FMWH and sections of six road projects covering 99 kilometers and 19 bridges by the FCTA.

“The FMWH and FCTA will be sharing the 2022 Sukuk Issue Proceeds of N130bn, which was successfully issued by the Debt Management Office on behalf of the Federal Government of Nigeria on December 02, 2022 as follows: Federal Ministry of Works and Housing (N110,000,000,000.00) and Federal Capital Territory Administration (N20,000,000,000.00).

“The 2022 Sovereign Sukuk of N130bn will be released as part of the Capital Expenditure in the 2022 Appropriation Act, which has been extended by the National Assembly to March 31, 2023.”

The Minister of Works and Housing, Babatunde Fashola, who commented on the bond initiative, described it as a critical instrument used to fix roads in the country.

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