The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed says that as at November 2021, N3.4 trillion has been spent on capital expenditure, representing over 74 per cent performance when compared to the total capital budget of N4.569 trillion.
In the same vein, the ministries of Federal Capital Territory (FCT), Works and Housing and Niger Delta shared the N250 billion Sukuk IV funds raised in December 2021 by the Debt Management Office (DMO). So far, N612.557 billion has been raised from Sukuk since its inception in 2017.
The Minister, who made the disclosure in Abuja at the symbolic presentation of Sukuk cheques to the beneficiary Ministries, explained that the latest N250 billion Sukuk will be released as part of the capital expenditure in the 2021 Appropriation Act, which has been extended by the National Assembly to March 31, 2022.
“Out of the N3.4 trillion so far released, N2.98 trillion represents 83 per cent of the provision for MDAs’ capital, N369.9 billion for multi-lateral/bilateral project-tied loans, and N49.52 billion as Government Owned Enterprises (GOEs) capital expenditure”, she stated. A breakdown of the N250 billion shows that Works and Housing ministry got the lion share of N210.565 billion, while the FCT got N29 billion. The Ministry of Niger Delta Affairs, on its part, enjoyed a slice of N10.435 billion.
The minister added: “So far, we have committed, through the Federal Ministry of Works and Housing (FMWH), a total of N362.557 billion from 2017 to date to the funding of key road projects through Sukuk.
“Today, we have the Federal Capital Territory Administration (FCTA) and Ministry of Niger Delta Affairs (MNDA) joining us.
“The government will continue to prioritise spending on critical infrastructure in order to sustain the momentum on GDP growth. As you may be aware, the GDP is projected to grow by 4.20 per cent in 2022. This can only be possible through steady increase in spending on critical infrastructure, such as roads”.
Earlier in her remarks, the Director General of the DMO, Patience Oniha, noted that Sukuk funds were important in infrastructure sector because of the multiplier effects.
“It is widely accepted as one of the best means of creating jobs, supporting and attracting new business and promoting overall growth and development.
“The introduction of Sukuk, as a source of raising funds for the government, has improved road infrastructure across the six geo-political zones.
“The level of investors’ß interest in the product is evident from the subscription of over N865 billion received from diverse investors for the N250 billion offered”, she stated.