- According to the latest report of the minister of finance, Zainab Ahmed, the federal government has released funds for road projects in the country
- Zainab said that the funds were sourced from the Sukuk bond to finance 28 road projects across the six geopolitical zones of Nigeria
- The minister further revealed that each of the geopolitical zones will get an equal amount of N16.67bn
The minister of finance, Zainab Ahmed, has said that the federal government has released not less than N100 billion sourced from the Sukuk bond in December 2018 for 28 road projects throughout the six geopolitical zones in Nigeria, Daily Trust reports.
Zainab, handing over the cheque to the ministry of power, works and housing, said that the proceeds will be used to further support government capital spending for 2018, adding that each zone will get a fixed and equal allocation of N16.67bn.
The minister revealed that the Sukuk was part of the initiatives of the federal government to increase funding sources, while also deepening the Nigerian capital market, mobilizing more savings and promoting financial inclusion.
Zainab said: “The use of the proceeds of the issuance has an in-built investor mechanism in two forms, namely; the trustees both registered by securities and exchange commission will monitor the disbursement of the Sukuk proceeds and also the Sukuk proceeds have been ring-fenced in a dedicated account at the central bank to ensure that they are utilized only for the road projects.”
She said the allocations were released to the 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.
Moreover, the director general of DMO, 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 also added that the sovereign Sukuk is a viable tool for financing infrastructure and it promotes financial inclusion and the development of domestic financial markets.
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Among others, the road projects include the dualisation of Suleja-Minna Road in Niger state Phase II, dualization of Abuja – Abaji – Lokoja Road: section I (international airport link road junction-sheda village junction) in FCT, dualization of Lokoja-Benin Road: Obajana Junction-Benin Section I Phase I: Obajana – Okene in Kogi State, dualisation of Ibadan – Ilorin Rd (route 2) section II: Oyo-Ogbomosho Road, in Oyo state, rehabilitation Of Enugu-Port Harcourt Road Section IV: Aba-Port Harcourt in Rivers State and dualisation of Ibadan – Ilorin Rd (route 2) Section II: Oyo-Ogbomosho Road, in Oyo.
Meanwhile, Legit.ng reported that only 4.48% of the 69 roads and bridges which the federal government listed as ongoing projects in the south-east had been completed, in use and in good condition, a report compiled by two non governmental organisations had shown.
The report produced by Voice of the People (V2P) and Hope Givers Initiative (HOG-1) after a monitoring and verification exercise of the 69 projects, also disclosed that two thirds of the completed projects were implemented by state governments.
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