*Presents N130bn cheque of Sukuk proceeds to ministries

The federal government as at November 2022, released the sum of N1.88 trillion as capital expenditure, which represents about 40 per cent performance when compared to the total Capital Budget of N4.7 trillion.

The Minister of Finance, Budget and National Planning, Mrs Zainab Shamsuna Ahmed, disclosed this Monday at the Symbolic Cheque Presentation Ceremony of 2022 Sovereign Sukuk Issue Proceeds of N130 billion to the implementing ministries in Abuja.

She explained that this informed the need to extend the period to implement the capital component of the 2022 Budget.

“The 2022 Sovereign Sukuk of N130 billion 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,” she said.  

Continuing she said, “As at date, this administration has invested the sum of N612.557 billion raised through Sovereign Sukuk between 2017 and 2021 for the construction and rehabilitation of key economic road projects in the six (6) geo-political zones and the Federal Capital Territory (FCT). In real terms, the amount has been used to construct and rehabilitate sections of 71 road projects covering 2,808.06 kilometers and 4 bridges by the FMWH and sections of six (6) road projects covering 99 kilometers and 19 bridges by the FCTA.

“The FMWH and FCTA will be sharing the 2022 Sukuk Issue Proceeds of N130 billion, which was successfully issued by the Debt Management Office (DMO) on behalf of the Federal Government of Nigeria (FGN) on December 02, 2022 as follows: 

i.  Federal Ministry of Works and Housing – N110 billion;

 ii.  Federal Capital Territory Administration – N20 billion.”

Earlier welcoming, the Director General of the Debt Management Office (DMO) Ms Patience Oniha said through the Sovereign Sukuk initiative, the DMO has demonstrated its strong alignment with the policy of President Muhammadu Buhari, on infrastructural development.

She pointed out that the DMO has positioned itself not only as an agency for managing the public debt including borrowing on behalf of the Federal Government, but as an active stakeholder in the domestic capital market through innovation, investor engagement and collaboration with other stakeholders. 

These have deepened the market, created benchmarks for other borrowers and promoted financial inclusion by providing a retail product, FGN Savings Bond, as well as, Sukuk and Green Bonds for ethical investors.