Modupe Gbadeyanka
By Modupe Gbadeyanka
The federal government has promised to sustain the momentum on gross domestic product (GDP) growth by prioritising spending on critical infrastructure.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, stated that this is why the administration of President Muhammadu Buhari is paying more attention to capital projects.
Speaking at the presentation of the proceeds of the N250 billion Sukuk issued by the Debt Management Office (DMO) in Abuja on Thursday, stated that, “As you may be aware, the GDP is projected to grow by 4.20 per cent in 2022. This can only be possible through a steady increase in spending on critical infrastructures, such as roads.”
She stated that “As at November 2021, N3.40 trillion had been expended for capital, which represents over 74 per cent performance when compared to the total capital budget of N4.569 trillion.
“Out of the N3.40 trillion so released, N2.98 trillion represents 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.”
She declared that “The N250 billion will be released as part of the capital expenditure in the 2021 Appropriation Act, which has been extended by the National Assembly to March 31, 2022” to three ministries, the Ministry of House and House, the Ministry of Niger Delta and the Federal Capital Territory Administration (FCTA).
Business Post reports that the Ministry of Works and Housing will receive N210,565,000,000, the Nigeria Delta Ministry will get N10,435,000,000, and the FCTA will receive N29,000,000,000.
It was the fourth time the federal government was disbursing Sukuk proceeds for critical road projects across the country.
The Finance Minister stated that a total of N362.557 billion has been shared from 2017 to date to the funding of key road projects through Sukuk.
“So far, we have committed, through the Federal Ministry of Works and Housing (FMWH), a total sum of N362.557 billion from 2017 to date to the funding of key road projects through Sukuk,” she said.
“In view of the significant milestones recorded in the use of Sukuk funds to reconstruct and rehabilitate our road infrastructure, which evidence is visible for all to see, the government decided to incorporate other ministries with critical road projects into the Sukuk funding structure,” she added.
