Budget: FG Releases N995.7bn For Capital Projects

DMO hands over N162.6bn Sukuk proceeds to Fashola
The Federal Government has released N995.665 billion for capital expenditure out of N1.347 trillion appropriated in the revised 2020 budget.
Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, disclosed this yesterday while presenting a cheque of N162.667 billion realised from the 2020 Sukuk issuance to the Minister of Works and Housing, Mr Babatunde Fashola (SAN).

Giving update on 2020 capital budget expenditure, Ahmed said: “Under the revised 2020 budget, the government appropriated the sum of N1.347 trillion for capital expenditure.
“Mr. President directed the release of 50 per cent 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.”

Ahmed noted that with the release of the N162.557 billion to the Ministry of Works and Housing, the amount appropriated for road projects financed by Sukuk in 2020 budget has been fully released.
“The government has been greatly 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.
“Besides, the fact that the evidence of the use of the proceeds by way of works done are there for all to see, the comments and feedback received from commuters, transporters, other businesses, investors and other well-meaning Nigerians have been heartwarming,” she added.

Speaking at the event, Director-General of the Debt Management Office (DMO), Ms. Patience Oniha, said the occasion marked successful completion of the Third Sovereign Sukuk issued by her organisation, on behalf of the Federal Government.
She said that with the issuance of the third Sukuk, the Federal Government had raised N362.577 billion, “all of which are for the rehabilitation and reconstruction of road projects across the six geo-political zones of Nigeria.

“The strong response to the Third Sovereign Sukuk for which a total subscription of N669.12 billion was received for the N150 billion that was offered, which represents a subscription level of 446.08 per cent, is indicative of good market awareness and acceptance of Sukuk as a financial product, both of which are project-tied, to support the development of infrastructure and other capital projects.”
On his part, Fashola described the event as “a clear evidence of transparency in the utilisation of Sukuk proceeds.”

He gave assurance that the proceeds of Sukuk will be judicially used.
The minister added that government valued the trust of the Sukuk investors, assuring that it would not be misapplied in the 44 roads projects to benefit from the N162.557 billion.

.He said contractors would return to work and employ workers, quarry operators and transporters of construction materials would be engaged and commuters would experience improved travel time