FG releases N995.7billion for capital projects

The Federal Government has released the sum of N995.665 billion for capital expenditure, in the implementation of the 2020 revised budget.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed this while presenting a cheque of the N162.667 billion realized from the 2020 Sukuk issuance, in Abuja on Monday.

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She said the government appropriated the sum of N1.347 trillion for capital expenditure under the revised 2020 budget, adding that with the release of the N162.557 billion to the Federal Ministry of Works and Housing, the amount appropriated for roads projects financed by Sukuk in 2020 budget has been fully released.

“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.”

In her remark, the Director-General (DG) of the Debt Management Office (DMO), Ms Patience Oniha said with the issuance of the Third Sovereign Sukuk, the federal government had raised the sum of N362.577 billion, all for the rehabilitation and reconstruction of roads 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 which are project-tied, to support the development of infrastructure and other capital projects.”

Receiving the symbolic cheque, the Minister of Works and Housing, Mr Babatunde Fashola (SAN) said that FG valued the trust of the Sukuk investors and that such a trust would not be misapplied in the 44 roads projects to benefit from the N162.557 billion.