The Ministry of Works and Housing has revealed that the long-awaited 2021 and 2022 SUKUK funds will be released in coming weeks for massive work on road projects being funded through the bond proceeds.
The Minister of Works and Housing, Mr Babatunde Fashola (SAN) made the disclosure while he was inspecting the ongoing dualisation of the Kano-Katsina road phases I and II in Kano and Kaduna States.
Nigeria has relied on Sovereign Sukuk issued between 2017 and 2020 to fund the construction and rehabilitation of road infrastructure.
In December 2021 alone, the Debt Management Office said the N250bn Sovereign Sukuk was oversubscribed by N865bn.
“The minister of finance has told us that very soon the SUKUK fund for 2021 and 2022 will be ready for release and that will be in a couple of weeks from now, so that all of the backlog of funding on works and certificates that have accrued will be paid and work can continue,” Fashola said.
The works minister who was pleased with the level of progress of the project said on the issue of compensation for the people affected by the project that it was the responsibility of the state government to handle such matters.
He argued that the power granted to the states under the constitution with respect to land control implied that they would compensate the affected persons.
Fashola said, “What we need really is the right of way, this is the cooperation needed from the states.”
But he assured that the compensation will be properly handled following the assurance given to the ministry by the Kano and Katsina states governments.
The minister explained that some sections of the roads were ignored due to the pending issues of compensation.
He assured that as soon as the compensations are settled, contractors will commence work on the skipped sections.