The Minister of Federal Capital Territory, Mohammed Bello has lamented what he described as an “unprecedented influx of people to the FCT since the return to democracy in 1999.
He also attributed the traffic gridlock experienced in the city to it, revealing that the administration is on the verge of securing a N200 billion SUKUK loan to facilitate the building of infrastructure such as roads and water projects across the Territory.
“The congestion and traffic situation mostly experienced in the city centre is due to “unprecedented influx of people to the FCT” since the return to democracy in 1999,” he stated during the inauguration of a technical committee on the proposed FCT issuance of SUKUK of N200 billion for the FCT 2022 statutory budget on Tuesday, in Abuja.
He said the loan facility was needed to enable the FCT Administration achieve its desired objective of rehabilitating and expanding some existing roads in the city and opening up more roads to arrest traffic gridlocked on major roads in the city.
While decrying the situation, he said the troubling demographic changes are consequently overstretching Abuja’s infrastructure and social amenities, while resources for development become more and more scarce and unavailable, thereby threatening the dreams of the capital’s founding fathers.
Expressing gratitude to the Debt Management Office (DMO) and the National Assembly for their continued support, Bello 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 the 7-man technical committee include developing a framework for accessing SUKUK fund by the FCTA in the domestic capital market for financing of infrastructure projects in the FCT; reviewing and advising on the procedure and options for obtaining sovereign guarantee for the issuance of SUKUK by the FCTA and preparing the budget estimates for the issuance of Sukuk by the FCT and presenting same for approval.
Others include to advice on the appointment of transaction parties and methodologies and advice on the eligibility and packaging of projects identified for funding with the proceeds of SUKUK, among others.
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