One of the cardinal objectives of the FCT Administration, under President Muhammadu Buhari, is the continual provision of world class infrastructure in the nation’s capital, in line with the dreams of the founding fathers.But it is no secret that funding has often proven to be a major challenge for the Administration in the quest of meeting its objectives in this regard.
While the FCTA has strived to meet its funding challenges by increasing internally generated revenue to the second highest in the country, experience has shown that the development of a world class city requires much more than the administration is currently able to generate.It may be recalled that the FCT Minister, Malam Muhammad Musa Bello made a passionate appeal for a special funding status for the FCT using the public hearing organized by the Revenue Allocation and Fiscal Commission (RMAFC)to plead the case of the FCT Administration.
While pursuing this option of increased funding from the Federation Account, the FCT Administration is equally leveraging the Sovereign Sukuk Financing option to vigorously pursue the completion of ongoing road projects, including bridges and other infrastructure projects across the FCT.The Sovereign SUKUK, which commenced in 2017, at a glance, is a strategic initiative by the Federal Government to support the development of infrastructure, promote financial inclusion and deepen the domestic securities market.It would be recalled that the Federal Government, following the significant milestones recorded in the use of SUKUK to reconstruct and rehabilitate road infrastructure, approved the incorporation of other agencies of government like the Federal Capital Territory Administration, the Ministries of Works and Housing as well that of the Niger Delta Affairs with critical road projects to key into the SUKUK funding structure.
Consequently, on the 3rd of January 2022, the FCT Administration received approval of the sum of N29 billion to fund critical ongoing road projects under the Sovereign Sukuk Issuance.The Minister of Finance, Budget and Planning, Zainab Ahmed, while making the presentation of the cheque to the beneficiaries, explained that the three Ministries will be sharing the SUKUK issue proceeds of N250 billion, which was successfully issued by the Debt Management Office on behalf of the Federal Government of Nigeria, on the 29th of December 2021.
The FCT Minister, Malam Muhammad Musa Bello, while receiving the N29 billion SUKUK cheque, disclosed that the funds will be utilized for the completion process of six on going road projects.These projects according to Engr Shehu Hadi Ahmed Executive Secretary of the FCDA which is the implementing agency for the projects , include the construction of the Southern Parkway from the Christian Centre to Ring Road One, Construction of the B6 and B12 roads, known as Independence and Constitution Avenues in the Central Business District, as well as the rehabilitation and expansion of the Outer Southern Expressway (Muhammadu Yisouffu Way) from the Villa Roundabout to Ring Road One Junction, including four interchanges at Yakubu Gowon Crescent, Shehu Shagari and Muhammadu Buhari Ways.
Others are the construction of the 15km Left Hand Service Carriageway of Outer Southern Expressway (OSEX) Stage II from Ring Road I Junction to Wasa Junction; Construction of One Service Carriageway of Inner Northern Expressway (INEX) from Ring Road III to Ring Road IV and lastly and the extension of Inner Southern Expressway (Goodluck Ebele Jonathan expressway) from Southern Parkway to Ring Road II (Christian Centre/CBN – Galadimawa Round-About).
A closer look at these projects, shows that the Southern Parkway is a critical road that forms the major spine of the FCT, which has been partly completed and opened to traffic up to Muhammadu Buhari Way. The road stretches from the Central Business District, traversing through phases one, two, three and four of the Federal Capital City and it also has facilities like streetlights, recreational parks and an underpass at Area II, Garki.
The B6 and B12 roads, also known as Independence and Constitution Avenues in the Central Business District, on other hand, when completed, will enable traffic to move in dual mode towards the Airport Road. The Circle Road around the 3-Arms Zone, which is an integral part of roads B6 and B12, as well as the Abuja National Stadium end of these roads have been completed, further making it imperative to complete the entire stretch of the roads. Inclusive also is the underpass from the National Stadium, which is a facility that connects to the Stadium Railway Station to cater for huge population and traffic during sporting events.Others, as stated earlier are the Rehabilitation and expansion of the Outer Southern Expressway (Muhammadu Yisouffu Way) from the Villa Roundabout to Ring Road One Junction, including four interchanges at Yakubu Gowon Crescent, Shehu Shagari and Muhammadu Buhari Ways; construction of the 15km Left Hand Service Carriageway of Outer Southern Expressway (OSEX) Stage II from Ring Road I Junction to Wasa Junction, the Construction of One Service Carriageway of Inner Northern Expressway (INEX) from Ring Road III to Ring Road IV, as well as the extension of Inner Southern Expressway (Goodluck Ebele Jonathan expressway) from Southern Parkway to Ring Road II (Christian Centre/CBN – Galadimawa Round-About).According to the FCT Minister, these projects, when completed, will improve navigability in the FCT by freeing up traffic bottlenecks, which will in turn reduce the loss of man hours due to traffic congestions.
Malam Bello also assured that the FCT Administration will work together with the contractors handling the projects to ensure that they are delivered in good time.In the words of the Minister, “In the FCT, we are just beginning with N29 Billion and I want to use this opportunity to thank the Honourable Minister of Finance, Budget and National Planning and her team for considering six of our projects for this very important financing model.”Continuing, the FCT Minister said, “These projects are all road projects that have already commenced; many of the contractors handling them are here today and we expect that by the time these projects are funded properly, vehicular movement and traffic management in the city of Abuja will improve substantially. So, working together with the contractors, I assure you that we will make sure that these projects are delivered on time.”Bello however appealed to the Finance Minister for increased allocation to the FCT from the SUKUK funding scheme to ensure that the FCT is able to provide infrastructure facilities for its ever-increasing population.
According to him, “You know that the N29 billion is a tip of the iceberg. So, I want to appeal to you, particularly because almost all of you here are resident in Abuja. We need to continue developing infrastructure of Abuja and the FCT by extension, particularly as now you know the population is over six million. So, it’s very important that we get this funding to complete all these projects and I’m sure when you consider SUKUK number four in 2022, you will be able to give us the N200 billion we asked for.”
DANIEL ACHINIRU, is an Abuja-based public affairs analyst