BREAKING: Nigerian govt releases ₦995.7bn for 2020 capital projects

Minister of Finance, Budget and National Planning, Zainab Ahmed, has said that the sum of ₦995.665 billion has so far been released for capital expenditure, to implement the 2020 revised budget.

The minister made this disclosure on Monday while presenting a cheque of the ₦162.667 billion to the Minister for Works and Housing, Babatunde Fashola.

According to her, the fund was realized from the 2020 Sukuk issuance.

She said: “Under the revised 2020 budget, the government appropriated the sum of ₦1. 347 trillion for capital expenditure.

“Mr. President directed the release of 50 percent of this amount during the signing of the revised budget before the end of July 2020. The total capital releases to date is ₦995.665 billion, including Sukuk.”

With the release of the ₦162.557 billion to the Federal Ministry of Works and Housing, the finance minister said the amount appropriated for roads projects financed by Sukuk in 2020 budget has been fully released.

According to the Minister, “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.”

Speaking at the event, Director-General of the Debt Management Office, DMO, Patience Oniha expressed delight at the successful completion of the Third Sovereign Sukuk issued by the DMO, on behalf of the federal government, last month.

The issuance of the third Sukuk she said has enabled the federal government to raise the sum of ₦362.577 billion, “for the rehabilitation and reconstruction of roads projects across the six geo-political zones of Nigeria.

She was particularly happy that ₦150 billion placed on offer was oversubscribed by 446.08 percent or ₦669.12 billion.

Receiving the cheque, the Minister for Works and Housing, Babatunde Fashola (SAN) said the application of the funds raised was, “a clear evidence of transparency in the utilization of Sukuk proceeds.”

He assured Sukuk investors that the trust they reposed in the offer will “not be misapplied in the 44 roads projects to benefit from the ₦162.557 billion.