FG boosts capital projects with N995.7bn releases to ministries, depts, agencies

As the federal government ramps up capital projects under the 2020 budget, the sum of N999.665 billion had so far been released to ministries, departments and agencies as capital expenditure to implement the 2020 revised budget.

Zainab Ahmed, minister of finance, budget and national planning, stated this in Abuja yesterday while presenting a cheque of the N 162.667 billion realised from the 2020 Sukuk issuance to the Babatunde Fashola, minister for works and housing Babatunde Fashola (SAN).

“Under the revised 2020 budget, the government appropriated N1. 347 trillion for capital expenditure; Mr. President directed the release of 50 percent of this amount during the signing of the revised budget before the end of July 2020. The total capital releases to date is N995.665 billion, including Sukuk,” she said.

With the release of the N162.557 billion to the Federal Ministry of Works and Housing, she said the amount appropriated for roads projects financed by Sukuk in 2020 budget has been released.

According to the minister, the government has been encouraged by the tremendous success recorded with regards to improvements in road infrastructure across the six geopolitical zones with the intervention of this special funding.

Patience Oniha, director-general, Debt Management Office (DMO), expressed delight at the successful completion of the Third Sovereign Sukuk issued by the DMO, on behalf of the Federal Government last month.

The issuance of the third Sukuk, she said, had enabled the Federal Government to raise N362.577 billion, “for the rehabilitation and reconstruction of roads projects across the six geo-political zones.

She was, particularly, happy that N150 billion placed on offer was over-subscribed by 446.08 per cent or N669.12 billion.

Receiving the cheque, Fashola said the application of the funds was, “a clear evidence of transparency in the utilisation of Sukuk proceeds.”

He assured Sukuk investors that the trust they reposed in the offer would “not be misapplied in the 44 roads projects to benefit from the N162.557 billion’’.