The FCT Minister, Muhammad Musa Bello, during the inauguration of Technical Committee on proposed Sukuk issuance, revealed that FCTA has made advanced plans to borrow the sum of N200 billion from Sukuk Fund.
Sukuk (Islamic bond or “Sharia-compliant” bond) is an Islamic financial certificate that represents a portion of ownership in a portfolio of eligible existing or future assets. They can be considered as an Islamic version of conventional bonds.
According to the minister, this loan, will be used to further support the government’s capital spending on water, street lighting and road projects already captured in the 2022 budget.
Meanwhile according to Vanguard newspaper, “FCTA’s total debt stood at N69.53bn as of March 31st, 2021. So, the proposed N200bn Sukuk borrowing means that the FCT Administration is seeking to increase its debt burden by 287.65 per cent in one year.”
Justifying the plans to borrow, the minister stated that the nation’s capital, has being witnessing high influx of people from across the country which has overstretched the existing infrastructure and social amenities, stressing that with the resources available for the development of the Territory not matching the infrastructural needs, it has become necessary to seek an alternative source of funding outside the statutory allocation.