Authority of the Nigerian Federal Capital Territory Administration (FCTA) has said that it would borrow the sum of N200 billion to finance provision of infrastructure such as roads and water projects across the Territory.
The Minister of the Federal Capital Territory, (FCT), Malam Muhammad Musa Bello, made this disclosure while inaugurating a Technical Committee on the Proposed FCT Issuance of SUKUK of N200 billion for the FCT 2022 Statutory Budget, in Abuja, Nigeria’s capital.
The Minister noted that the loan facility was needed to enable the FCTA achieve its desired objective of rehabilitating and expanding some existing roads in the city and open up more roads to arrest traffic gridlocked on major roads in the city.
Bello, who attributed the congestion and traffic situation of the city centre to unprecedented influx of people to the FCT since the return to democracy in 1999, opined that an alternative funding outside statutory funding to finance completion of projects in the FCT was inevitable.
He decried that troubling demographic changes consequently overstretched Abuja’s infrastructure and social amenities, while resources for development became more and more scarce and unavailable, thus threatening the dreams of the capital’s founding fathers.
The Minister then expressed gratitude to the Debt Management Office (DMO) and National Assembly for their continued support toward the development of the Federal Capital City and Satellite down within the nation’s capital, Abuja.
He also stated that the proposed N200 billion loan would complement the N29 billion loan earlier received from the Federal Ministry of Finance through Sukuk funding.
Some of the terms of reference handed to the 7-man technical committee include to develop a framework for accessing Sukuk fund by the FCTA in the domestic capital markets for financing of infrastructure projects in the FCT; review and advise on the procedure and options for obtaining sovereign guarantee for the issuance of Sukuk by the FCTA and prepare the budget estimates for the issuance of Sukuk by the FCT and present same for approval.
Others include to advise on the appointment of transaction parties and methodologies and advise on the eligibility and packaging of projects identified for funding with the proceeds of Sukuk, among others.
Earlier, Director-General, DMO, Ms Patience Oniha, while assuring the FCTA of support in obtaining the loan facility, warned that it should be judiciously used for the purposes it was sought.
She stated that one could hardly drive around Nigeria without noticing the good works of Sukuk, adding that Sukuk has attracted a lot of goodwill and buying from Nigerians because they were witnessing work done with monies borrowed.
Senator, representing the FCT and Senate Minority Whip, Sen. Philip Aduda; Chairman, Senate Committee on FCT, Sen. Abubakar Kyari, and Chairman, House Committee on FCT, Abdullahi Idris Garba, who was represented by Hon. Igariwe Iduma, all pledged support of the lawmakers to the FCT Administration and promised to continue to work together to archives its goals.
They also lauded the efforts and contribution of the Minister and other top management staff of the Federal Capital Territory in developing the Capital City of the dream of the founding fathers.
They further enjoined the Minister to develop more infrastructure in the satellite towns thereby decongesting the city center and reducing traffic gridlock in Abuja.
