Infrastructure Financing News & Reports Roads

Works Ministry Gets N110b Sukuk Funding for Roads

The Federal Ministry of Works and Housing has received a cheque of N110 billion SUKUK fund to build roads in six geo-political zones.

A statement by Director of Press and Public Relations, Lere-Adams Blessing, said two ministries benefited from N130 billion 2022 SUKUK fund: Federal Ministry of Works and Housing and Federal Capital Territory, with the ministry receiving N110 billion, and FCT, N20 billion.

Mr Babatunde Fashola, Minister of Works and Housing

SUKUK fund is a Public Private Partnership (PPP), among funding options adopted by Federal Government under President Muhammadu Buhari to fund critical roads. 

Receiving the cheque, the minister, Babatunde Fashola, gave an account of the nature of  roads before  SUKUK funding.

He said total capital budget for projects in 2015 was N18 billion.

“As of 2015, the budget for Works was N18 billion at the time oil prices were just dropping shy of a $100 per barrel, and all that could be committed to roads was just N18 billion.”

Explaining the impact of the amount, he said construction companies were laying off staff because  Federal Government was owing them. ‘’That was the story before SUKUK,” he said.

Fashola noted that this development could not fund roads adequately despite the fact that the budget was moved from N18 billion to over N260 billion in 2016.

He said SUKUK financing has enhanced completion of some priority road and bridge projects.

Earlier, Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed, said Buhari was committed to development of road infrastructure.

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