As one of the beneficiary ministries of SUKUK funding for road transport infrastructure in the country, the Minister of Works and Housing, Mr. Babatunde Fashola, SAN, on Thursday provided details on roads and bridges which the SUKUK funding has enabled the Ministry to undertake since its inception in 2015 across the length and breadth of Nigeria.
SUKUK, which the Minister described as a form of Public Private Partnership (PPP), was among the funding options adopted by the Federal Government under President Muhammadu Buhari to fund the construction of critical roads in Nigeria.
At the symbolic presentation ceremony of the N250 billion Federal Government 2021 SUKUK cheque to the three beneficiary Ministries, Fashola gave account on how his ministry spent the previous SUKUK funds given to his Ministry.
The Minister stated that from the first SUKUK funds of N100 billion, released in 2017, 25 roads, covering 482 kilometres length were delivered; the second SUKUK of 2018 had 28 roads covering 643 kilometres length delivered, while the third SUKUK funds of N162 billion covered 44 highway and bridge projects with the total length of 757 kilometres covered across the nation.
Fashola went further to explain that SUKUK financing has enhanced completion of some priority road and bridge projects across the country which includes: the completion of 296 KM Sokoto-Tambuwal-Jega-Yawuri in Sokoto and Kebbi States, completion of 142 KM Section II (Shuwarin – Azare ) of Kano-Maiduguri road, completion of 106 KM Section III (Azare- Potiskum) of the Kano-Maiduguri road and the completion of 1.2 kilometer /360m length Ikom Bridge.
The Minister also explained that the impact of debt and borrowing on the economic lives of the people was significant; pointing out that proper usage of the debt on infrastructure in Nigeria had helped in galvanizing the economy. “Another thing to take home is that debt properly used can galvanize the economy. It is that debt instrument that serves so many people from diverse parts of Nigeria here today,” he explained.
Speaking on wealth creation through proper usage of borrowed funds, he said: “Wealth is distributed across when committed to infrastructure. Money moving around the economy, it creates consistent employment and engagement. Suppliers are at work, ” he said
Fashola commended the supportive role of all the stakeholders that made it possible for the Federal Ministry of Works and Housing to succeed in the delivery of road transport infrastructure to Nigerians, listing the National Assembly for their approval, Federal Ministry of Finance and the Debt Management Office.
Earlier, the Minister of Finance, Budget and National Planning, Mrs. (Dr.) Zainab Shamsuna Ahmed, listed the three beneficiary ministries of the N250 billion 2021 SUKUK and the amount allocated each as : Federal Ministry of Works and Housing (N210 billion), Ministry of Federal Capital Territory (N29 billion) and Ministry of Niger Delta Affairs (N10 billion).
Mrs. Ahmed disclosed that so far from 2017 to date the total SUKUK funds issued to the Federal Ministry of Works and Housing was N362.577 billion which the Debt Management Office issued on behalf of the Federal Government for the funding of key road projects through SUKUK, stating that government has given priority to capital expenditure spending in order to sustain the momentum of the economy.
In her remarks, the Director-General of the Debt Management Office (DMO), Mrs. Patience Oniha, said that presentation of the N250 billion SUKUK cheque to the three ministries was in line with the President Muhammadu Buhari administration’s strategic objectives of development of infrastructure.
She said: “Improvement in infrastructure is widely accepted as one of the best means of creating jobs, supporting and attracting new businesses and promoting growth and development due to its multiplier effects”.
She added that the introduction of SUKUK as a source of raising funds for government has improved road infrastructure across the six geo-political zones of the country. “sI am pleased to report that since the debut N100 billion Sovereign SUKUK in September 2017, the DMO has issued three more, getting better each time and bringing the total amount raised through SUKUK so far to N612.577 billion,” she said.
