Economy

DMO presents N130bn sukuk cheque to FMWH, FCTA

Published

1 year ago

February 7, 2023

The Debt Management Office, on Monday presented cheques of N130 billion being Proceeds of the 2022 Sovereign Sukuk offer to the implementing ministries.

The implementing ministries were the Federal Ministry of Works and Housing (FMWH) and the Federal Capital Territory Administration (FCTA).

The cheque were presented by Mrs Zainab Ahmed, the Minister of Finance, Budget and National Planning at a ceremony which held in her office in Abuja.

According to Ahmed, the issuance of sovereign sukuk, a project-tied debt instrument, is one of the many innovative and very successful initiatives of the present administration.

Ahmed said it was aimed toward financing development of critical infrastructure.

She said that the facts on how much the initiative had helped to improve road infrastructure across the country were glaring.

“As at date, this administration has invested the sum of N612.557 billion raised through Sovereign Sukuk between 2017 and 2021 for the construction and rehabilitation of key economic road projects.

“The projects are in the six geo-political zones and the FCT.

“In real terms, the amount has been used to construct and rehabilitate sections of 71 road projects covering 2,808 kilometers and four bridges by the FMWH.

“It has also aided the construction of sections of six road projects covering 99 kilometers and 19 bridges by the FCTA,” she said.

The minister said that FMWH and FCTA would be sharing N130 billion, being proceeds of 2022 Sukuk issue proceeds which was successfully issued by the DMO on behalf of the Federal Government.

She said that the release would form part of the 2022 budget, which implementation had been extended to March by the National Assembly

“FMWH will get N110 billion and the FCTA will get N20 billion.

“The N130 billion will be released as part of the capital expenditure in the 2022 Appropriation Act, which has been extended by the National Assembly to March 31.

“As at November 2022, N1.88 trillion had been released as Capital Expenditure, which represents about 40 per cent performance when compared to the total Capital Budget of N4.7 trillion.

“This informed the need to extend the period to implement the capital component of the 2022 Budget,” she said.

According to her, beside the immense contributions of Sukuk to the funding of critical road infrastructure, the objectives of deepening the domestic capital market and financial inclusion are being achieved by the government.

The Director-General of the DMO, Patience Oniha, said that the office started the journey toward issuing a Sovereign Sukuk some years back, diligently working with experts to get the process and documentation right.

According to Oniha, these efforts paid off with the issuance of the first Sovereign Sukuk of N100 billion in September, 2017.

“The DMO has issued Sukuk four more times bringing the total amount raised as at Dec. 2022 to N742.56 billion.

“From the Sukuk issued between 2017 and 2021, a total of N612.56 billion was raised and deployed to the construction and rehabilitation of sections of 71 roads and four bridges covering a total of 2,820 km,” she said.

She commended the implementing ministries and their various contractors for supporting the DMO in the Sukuk initiative.

She said that through the initiative, the DMO had demonstrated its strong alignment with the policy of President Muhammadu Buhari on infrastructure development.

“Furthermore, the DMO has positioned itself as an agency for managing the public debt including borrowing on behalf of the Federal Government.

“It has also become an active stakeholder in the domestic capital market through innovation, investor engagement and collaboration with other stakeholders.

“These have deepened the market, created benchmarks for other borrowers and promoted financial inclusion by providing a retail product, FGN Savings Bond, as well as Sukuk and Green Bonds for ethical investors,” Oniha said.

According to her, the DMO remains committed to its mandate and market development activities.

The Minister of Works and Housing, Mr Babatunde Fashola, said that the Sovereign Sukuk had contributed immensely to raising badly needed funds for roads projects across the country.

Fashola said that various construction companies, which had laid off many of the staff due to redundancy had recalled most of the staff members, partly due to the funding support from Sovereign Sukuk.

He commended the former finance minister, Mrs Kemi Adeosun, the incumbent Minister of Finance, as well as the DMO director-general for initiating and sustaining the Sukuk initiative.

Related Topics:DMO FCTA FMWH N130bn sukuk cheque

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Economy

Nigeria’s inflation rate climbs to 28.92%, marks twelfth straight month of increase

Published

4 months ago

January 15, 2024

NewsDirect

By Sodiq Adelakun

Inflation in Nigeria continued to rise for the twelfth consecutive month in December, with the headline inflation rate reaching 28.92%, up from 28.20% in November.

The National Bureau of Statistics released its consumer price index report on Monday, revealing the ongoing impact of inflation on the country’s economy.

More details to come…

Economy

Nasarawa Assembly introduces bill to regulate private schools, tertiary institutions

Published

8 months ago

September 13, 2023

NewsDirect

The Nasarawa State House of Assembly has announced the first reading of a bill aimed at regulating private schools and tertiary institutions in the state.

The bill, titled “A Bill for a Law to Regulate the Establishment and Operation of Private Nursery, Primary, Secondary Schools and Tertiary Institutions in Nasarawa State and Other Matters Connected Therewith,” was introduced during the House proceedings on Monday in Lafia.

In addition to this bill, the House also passed two executive bills that focus on promoting education and skills training in the state.

The bills, if passed into law, are expected to enhance the quality of education and boost skills training across Nasarawa State.

Three bills have successfully passed their first reading in Nasarawa State, Nigeria.

The first bill, titled “A Bill For a Law to Establish the Wing Commander Abdullahi Ibrahim Vocational and Technology Institute, Lafia, and other Matters Connected Therewith,” aims to establish a vocati onal and technology institute in Lafia, the state capital. This institute will provide valuable skills training and education to the youth of the region.

The second bill, named “A Bill for A Law to Amend College of Agriculture, Science and Technology, Lafia, Nasarawa State Law 2020, and Matters Connected Thereof,” seeks to amend the existing law governing the College of Agriculture, Science and Technology in Lafia.

The proposed amendments aim to enhance the college’s operations and ensure it remains at the forefront of agricultural and technological advancements.Lastly, the third bill, titled “the Bill for a Law to Regulate the Establishment and Operation of Private Nursery, Primary, Secondary Schools and Tertiary Institutions in Nasarawa State and Other Matters Connected Therewith,” focuses on regulating the establishment and operation of private educational institutions in the state.

This bill aims to ensure that these institutions meet certain standards of quality and provide a conducive learning environment for students.

“The Speaker of the House, Alhaji Ibrahim Abdullahi, announced that the second reading of the bill for the establishment of the Wing Commander Abdullahi Ibrahim Vocational and Technology Institute, Lafia, and other related matters will take place on October 2.

The second reading of the bill to amend the College of Agriculture, Science and Technology, Lafia, Nasarawa State Law 2020, and matters connected thereof, will be scheduled for October 3.

These bills demonstrate the commitment of the Nasarawa State House of Assembly to improving the educational sector and providing opportunities for skills development in the state.

“I will slate Oct. 3, for the second reading of A Bill for A Law to Amend College of Agriculture, Science and Technology, Lafia, Nasarawa State Law 2020, and Matters Connected Thereof.

“I will also slate Oct. 4 for the second reading of A Bill for a Law to Regulate the Establishment and Operation of Private Nursery, Primary, Secondary Schools and Tertiary Institutions in Nasarawa State and Other Matters Connected Therewith,” he said.

Earlier, Alhaji Mohammed Omadefu, the Majority Leader of the House, moved motions for the bills to scale first readings.

The Minority Leader of the House, Mr Luka Zhekaba, seconded the motion.

The House unanimously passed the bills into first readings.

Economy

Inflationary pressures to ease by December – Economist, Yusuf

Published

11 months ago

July 3, 2023

NewsDirect

The Director of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf has said the current inflationary pressures might ease by December this year.

Yusuf disclosed this on Sunday in his Half Year Review of 2023.

His review comes amid the effect of fuel subsidy removal and foreign exchange reforms by President Bola Ahmed Tinubu’s administration.

Consequently, the prices of goods and services sharply increased.

The National Bureau of Statistics said Nigeria’s inflation is 22.41 per cent. Nigerians have continued to lament the hike in the prices of goods and services.

Meanwhile, Yusuf said that the effect of fuel subsidy removal and forex reforms would be in the short term.

According to him, the challenges would gradually reduce before the year ends.

Meanwhile, Yusuf said the CBN should implement a sustainable intervention framework to moderate the volatility in the forex market.

“Inflationary pressure is expected to ease before the end of the year.

“It would pave the way for an equilibrium exchange rate which would be more tolerable and sustainable”, he stated.