Business

Why FCTA is borrowing N200bn for projects, by Minister

The Federal Capital Territory Administration (FCTA) is set to borrow N200 billion to finance road and water projects in the territory.

The FCT Minister, Malam Muhammad Bello, said this on Tuesday in Abuja during the inauguration of a Technical Committee on the Proposed FCT issuance of SUKUK of N200 billion for the FCT 2022 Statutory Budget.

Bello explained that loan facility was needed to enable the FCTA to achieve its desired objective of rehabilitating and expanding some existing roads in the city.

According to him, the money will help to open up more roads to arrest gridlock on major roads in the city.

He attributed the congestion and traffic situations in the city centre to “unprecedented influx of people to the FCT” since the return to democracy in 1999.

Bello stressed that an alternative funding outside statutory allocation was needed to complete projects in the FCT.

Bello said that demographic changes consequently overstretched Abuja’s infrastructure and social amenities while resources for development had become more and more scarce.

“This development is threatening the dreams of the founding fathers.

He expressed gratitude to the Debt Management Office (DMO) and National Assembly for their continued support.

Bello added that the proposed N200 billion loan would complement the N29 billion loan earlier received from the Federal Ministry of Finance through SUKUK funding.

TheStar

Editor

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