Adeosun says N100bn Sukuk proceeds ready for release to Works Ministry
Finance Minister, Kemi Adeosun, has disclosed that the proceeds of the N100billion Sukuk fund will be released to the Works Ministry by Thursday this week.
This comes as the Federal Government has confirmed that 60 percent of the 2017 budget will be rolled over to 2018, even as it put the total revenue collected at of June this year at N2.305 trillion.
Appearing before the Joint Senate Committee on Finance and Appropriation on Tuesday, Adeosun revealed that taxes on luxury items like champagne, private jets, cigarettes among others will be released soon.
She put the capital component of the N2.177 trillion 2017 budget released so far at N340.9 billion.
“We successfully completed the Sukuk last week and raised N100billion which is to be released this week.
“The funds are earmarked for roads. It will be released on Thursday this week. N440.9 billion will be the figure (of capital budget) at the end of this week.
“We have kept the capital spending going to ensure that efforts to relate the economy are continuous and seamless and there was no interruption in the activities of Ministries, Department and Agencies and to ensure that they continued with their projects,” the minister told lawmakers.
The N100 billion Sovereign Sukuk, which debuted last month, has a tenor of seven years, and has been certified as ethically compliant by the Financial Regulation Advisory Council of experts of the Central Bank of Nigeria (CBN).
Nigeria’s Federal Government is implementing a record N7.441 trillion budget for 2017 to turn the ailing economy to recovery and growth, amid tight incomes. Total revenue for the 2017 fiscal year was projected at N5.08 trillion, resulting to a projected overall deficit of N2.356 trillion, and representing 2.18 percent of GDP.
The budget deficit is to be financed mainly be borrowing N2.32 trillion, out of which government hopes to source N1.25trillion domestically and N1.07 trillion from foreign sources.
Apart from serving as alternative source of funding for the Government, the Sukuk will also serve to diversify the investor base for FGN Securities, promote financial inclusion and deepen the domestic capital market.
Adeosun also informed the Senate that cumulative releases on current expenditure is N1.5trillion
The Minister said that N128.8 billion has been released for statutory transfers; while Funds released for Pensions stood at N37.8billion.
For overheads, N92.4billion has been released while Service Wide Votes has so far gulped N223.6billion
The Budget passed by National Assembly and signed by the then Acting President last June showed that Statutory Transfers got N434 billion, while N1.8 trillion is for Debt Servicing, N177.5 billion for Sinking Fund for Maturity Bonds and N2.99 trillion for Recurrent Non-Debt Expenditure.
Also speaking to the joint committee, Minister of Budget and National Planning, Udoma Udo Udoma, revealed that she to cash crunch, 60 percent capital expenditure of this year’s budget will be rolled over to 2018.
According to him, there was no way the N2.177 trillion capital budget will be released with less three months to the end of the year.
“We can’t spend N2.1trillion in three months. It’s not possible because even the procurement processes would not allow that,” he said.
On his part, the Director-General, Budget Office, Ben Akabueze, gave the total revenue collected at of June this year at N2.305 trillion, representing 45 percent.
The government had projected N5.084 trillion projected revenues in this year’s budget.
OWEDE AGBAJILEKE, Abuja
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