N100bn Sukuk Proceeds for 28 Projects
…Across Six Geopolitical Zones
The Federal Government says as part of efforts to adequately fund infrastructural development is deploying the recently oversubscribed N100 billion Sukuk proceeds to fund 28 projects spread across the six geopolitical zones in the country.
Finance Minister, Mrs Zainab Ahmed who spoke at the symbolic presentation of the amount to the Minister of Power, Works and Housing Babatunde Raji Fashola in Abuja, said that “proceeds will be used to further support government capital spending for 2018- the construction and rehabilitation of twenty-eight(28) key economic roads across the six geopolitical zones in the country.
Mrs Ahmed also said that each of the zones has equal allocation of N16.67 billion just as the roads to be constructed and rehabilitated will ease commuting, spur economic activities across the country and further close the infrastructure gap.
She noted that the Sukuk funding option was part of the initiatives of the government to diversify government funding sources, while also deepening the Nigerian Capital market, mobilizing more savings and promoting financial inclusion.
She also said the fund will be released to the Federal Ministry of Power, Works and Housing based on the framework agreed with the Trustees in order to ensure transparency and accountability in the use of the proceeds.
Speaking at the ceremony on the successful issuance of the second N100 billion Sovereign Sukuk, the Director General of the Debt Management Office(DMO) Mrs Patience Oniha said Sukuk has become a veritable tool for financing infrastructure which has several multiplier effects including job creation and boosting economic activities.
She said in addition to being a viable tool for financing infrastructure, the sovereign Sukuk promotes financial inclusion and the development of the domestic financial markets.
Earlier, Minister of Power Works and Housing, Babatunde Raji Fashola said the fund would go straight to the contractors who in turn will use the proceeds to procure necessary materials for road and bridges construction, adding that the alternative funding arrangements for infrastructure was a welcome development.
Speaking on behalf of the contractors present, the Managing Director/CEO of Arab Contractors O.A.O Nigeria Limited, Engr.Mohammed El-Edaros said they were highly elated to be part of the symbolic presentation of the N100 billion Sukuk funding adding that the contractors would everything possible to mobilise and execute projects within the framework of the agreement.