Minister of the Federal Capital Territory (FCT), Malam Muhammad Musa Bello has inaugurated an 8-man Technical Committee to access the N200 billion Sukuk fund to augment the FCT 2022 statutory budget.
The committee is made up of the Federal Capital Territory Administration (FCTA) and Debt Management Office (DMO).
Speaking at the inauguration today, February 15 in Abuja, the Minister Muhammad Musa Bello stressed that the alternative fund will fast-track the fulfilment of the FCTA’s mandate of building a world class nation’s capital.
He emphasized that the issuance of SUKUK of the sum of 200 billion Naira for the FCT 2022 statutory budget would propel the Administration to meeting its objective of building a world class city for Nigeria.
Muhammad Musa Bello said that the pressure on existing infrastructure, occasioned by the influx of people, vis-à-vis the dwindling allocated funds necessitated the need for sukuk fund as an alternative source of funding capital projects that have great bearing on residents of the Territory.
“Resources available for the development of the Territory no longer matched the infrastructural need, with a resulting fear that Abuja may not achieve the dreams of its founding fathers.
“For this reason, we needed to rehabilitate and expand some existing roads in the city as well as open up some others to arrest traffic gridlocks along major roads within and around the city and satellite towns. Hence the need to seek for an alternative source of funding outside our statutory funding to finance the completion of some projects with huge capital outlay but with the potential for maximum positive impact on residents.”
The Minister commended the government of President Muhammadu Buhari for making Sukuk, under the Debt Management Office, available to the FCT, adding: “Sukuk has come to the rescue.”
He said that the N29 billion Sukuk that was previously approved for the FCT is being used for the completion of various road projects to open up the capital city.
Such road projects will put an end to the hardship motorists experience while navigating from one point of the FCT to another.
Mohammad Musa Bello said that the proposed N200 Billion Sukuk would focus on the completion of major on-going water, street lightening and additional road projects.
He read out the Committee’s Terms of Reference, which among others, include Developing a framework for accessing Sukuk fund for the FCTA; Review and advise on the procedure and options for obtaining sovereign Guarantee for the issuance of Sukuk; Prepare a budget estimate for the issuance and advise on requisite approvals.
The Minister charged the committee to carry out its assignment diligently.
He commended the National Assembly, especially, lawmakers overseeing the FCT with whom he had enjoyed support and guidance since he became Minister.
In her remarks, the Director General of the Debt Management Office, Ms. Patience Oniha commended the Minister for his drive and foresight.
She expressed satisfaction on the way the SUKUK fund is being used, adding that the result has been visible.
Speaking at the occasion, the Chairman of the Senate Committee on FCT, Senator Abubakar Kyari advised the FCTA to focus on the development of satellite towns to relieve the pressure on the Federal Capital City (FCC).
