FG releases N100bn Sukuk fund for 28 road projects

Proceeds of the second Sovereign N100 billion Sukuk has been deployed to finance critical road infrastructure across the country.

The proceeds will be for the Construction and Rehabilitation of Twenty-Eight (28) key economic Road Projects earlier captured in the 2018 Budget.

The Road Projects are located in the six (6) Geo-political Zones of the country with each Zone having a total allocation of N16.67 billion.

Speaking at the presentation of symbolic cheque of N100 billion Sovereign Sukuk proceeds to the Federal Ministry of Power, Works and Housing in Abuja on Thursday, the Minister of Finance, Mrs Zainab S. Ahmed noted that “the funds will be released to the Federal Ministry of Power, Works and Housing based on the framework agreed with the Trustees in order to ensure transparency and accountability in the use of proceeds.”

She added that “the Sukuk funding option is part of the initiatives of the government to: diversify government funding sources, while also deepening the Nigerian capital market, mobilising more savings and promoting financial inclusion.”

The roads to be funded with the sovereign sukuk fund the finance minister said, “will ease commuting, spur economic activities across the country and further close our infrastructural gap.”

In his address, the Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola stated that “roads are coming, those are assets that would enable business that would enable transport, movement of good and services and assets that will last 25, 30 to 40years. This is a good investment to make, so for those who ask why are we borrowing, we are borrowing to build at today’s prices assets that will last us for another 30years.”

He went further to state that “it will be more expensive to build but more importantly where is the money going. As soon as I collect this cheque, I am going to give it to the contractors but even they can’t keep it, they have to give it to their suppliers because they need aggregates, they need materials and labourers but they first need suppliers.”

This administration he said “is committed to follow the part of greatness, build the foundation for tomorrow by investing in infrastructure…It means that for example we have to raise money and I am very happy to learn that over 1,876 investors are already doing business because Buhari government decides to build, that is how to build an economy.”

Some the road projects that will benefit from this funding include the: dualization of Abuja – Abaji – Lokoja Road: Section I (International Airport link road junction-Sheda Village Junction) in FCT Contract No.5862. Specifically, it will be Wearing course, reconstruction of existing carriageway, stone pitching, kerbs, drainage and outstanding variations (NGN464,806,419.09) to be handled by Dantata & Sawoe Construction Company Nigeria Limited (North Central)

For the North East the dualisation of Kano-Maiduguri Road linking Kano-Jigawa-Bauchi-Yobe and Borno States. Sect. III (Azare-Potiskum), in Bauchi State Contract No.5880 will be handled by Mothercat Limited specifically the project will cover wearing course, pipe culverts, trapezoidal and rectangular drains, new jersey barrier, bridge works, 4-way cable duct, road furniture and protection works.

For the South East, it will be the rehabilitation and reconstruction of Enugu-Port Harcourt Dual Carriageway Section II: Umuahia Tower-Aba Township Rail/Road Bridge Crossing (CH. 120+500-CH. 176+600) in Abia State Contract No.6209 to handled by Arab Contractor Nigeria Limited. The job entails laterite fill, laterite sub-base, sand/cement base, crushed rock base, wearing course, asphaltic binder course, asphaltic wearing course and concrete median.

While for the South-South it will be, the dualization of Yenegwe Road Junction-Kolo – Otuoke – Bayelsa Palm (20km) in Bayelsa State Contract No.6248 to be handled by CCECC Nigeria Limited for the Excavation of unsuitable materials, construction of pipe culverts, stone pitching, median kerbs, sand-cement base, stone base course, binder course and wearing course.In the South West it will be the dualisation of Ibadan – Ilorin Rd (Route No. 2) Section II: Oyo-Ogbomosho Road, in Oyo State Contract No.1793A with Reynolds Construction Company (Nig) Limited as the contractor for Site clearance, earthworks, filter/underground drain layer, concrete side drain, sub base, stone base, binder course, 1000mm diameter piles, concrete foundation and pile cap, concrete piers, concrete abutment, concrete beams of superstructure and installation of bearings on piers