Nigerian government has explained that proceeds of the N250 billion sovereign Sukuk issued last December by the Debt Management Office (DMO) would be released as part of the 2021 capital expenditure.
This is in line with the Appropriation Act, which had been extended to March 31, 2022, by the National Assembly.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, who stated this in Abuja, yesterday, also disclosed that a total of N3.4 trillion had been released for capital projects as of November 2021.
Speaking at the symbolic cheque presentation ceremony of the N250 billion Sukuk proceeds to the implementing ministries, the minister disclosed that since the emergence of Sukuk as a financing window for infrastructure in September 2017, a total of N362.557 billion had been given to the Federal Ministry of Works and Housing (FMWH) to fund key road projects.
Ahmed stated that in view of the significant milestones recorded in the use of Sukuk to reconstruct and rehabilitate road infrastructure, with visible evidence, the government decided to incorporate other ministries with critical road projects into the Sukuk funding structure.
She said: “Today, we have the Federal Capital Territory Administration (FCTA) and Ministry of Niger Delta Affairs (MNDA) joining us.
The three ministries (FMWH, FCTA and MNDA) will be sharing the Sukuk issue proceeds of N250 billion, which was successfully issued by the Debt Management Office (DMO) on behalf of the Federal Government of Nigeria on December 29, 2021.”
The minister stated that the disbursement of the N250 billion gives the FMWH N210,565,000,000.00; FCTA -N29,000,000,000.00; and MNDA – N10,435,000,000.00.
On the performance of the 2021 budget, Ahmed noted that as of November 2021, N3.4 trillion had been expended on capital projects, which represented over 74 per cent performance when compared to the total capital budget of N4.569 trillion.
According to her, out of the released N3.4 trillion, N2.98 trillion represented 83 per cent of the provision for ministries, departments and agencies (MDAs’) capital, N369.9 billion for Multi-lateral/Bilateral Project-tied loans, and N49.52 billion as Government Owned Enterprises (GOEs) capital expenditure.
