By Ben Adoga, Abuja
The Federal Capital Territory Administration (FCTA) has said that it would borrow not less than N200 billion to finance infrastructure such as roads and water projects across the Territory.

FCT Minister, Malam Muhammad Musa Bello made this disclosure during inauguration of a Technical Committee on the Proposed FCT Issuance of SUKUK of N200 billion for the FCT 2022 Statutory Budget, in his office on Tuesday.

According to Bello, the loan facility was needed to enable the FCTA achieve its desired objective of rehabilitating and expanding some existing roads in the city and open up more roads to arrest traffic gridlocked on major roads in the city.

Attributing the traffic congestion into the city centre to “unprecedented influx of people to the FCT” since the return to democracy in 1999, Bello opined that an alternative funding outside statutory funding to finance completion of projects in the FCT was inevitable.

He decried the troubling trend of influx into the FCT which he said overstretches Abuja’s infrastructure and social amenities, while resources for development become more scarce and unavailable, threatening the dreams of the capital’s founding fathers.

Expressing gratitude to the Debt Management Office (DMO) and National Assembly for their continued support, Bello stated that the proposed N200 billion loans would complement the N29 billion loan earlier received from the Federal Ministry of Finance through SUKUK funding.

Some of the terms of reference handed the 7-man technical committee included to develop a framework for accessing SUKUK fund by the FCTA in the domestic capital arena for financing of infrastructure projects in the FCT; review and advise on the procedure and options for obtaining sovereign guarantee for the issuance of SUKUK by the FCTA and prepare the budget estimates for the issuance of SUKUK by the FCT and present same for approval.

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Others include, to advise on the appointment of transaction parties and methodologies as well as advise on the eligibility and packaging of projects identified for funding with the proceeds of SUKUK, among others.

Earlier, Director-General, DMO, Ms Patience Oniha, while assuring the FCTA support in obtaining the loan facility, warned that it should be judiciously used for the purposes it was sought.