FG to fund critical road projects through bond instruments

Zambia streets reconstruction. The First Highway Project consists of the reconstruction and bituminous paving of sections of the Great East and Great North Roads and the detailed engineering of an additional section of the Great North Road. Both of these roads are main arteries and provide international connections to the sea. The Great North Road is part of the main highway from Cape Town, South Africa to Dar-es-Salaam, Tanzania and to Nairobi, Kenya, and the Great East Road links the center of Zambia with the highway and railway systems of Malawi and Mozambique. In the present unsettled conditions in Central Africa arising from the Unilateral Declaration of Independence by Rhodesia, these roads are carrying exceptional import and export traffic diverted from the Rhodesia Railways. However, reconstruction of the project sections to the proposed standards would be economically justified on the basis of normal traffic patterns. The project sections will have ample capacity to accommodate expected normal traffic volumes and would also be able to handle extraordinary traffic for considerable periods if the need should arise.. (Photo by: Sergi Reboredo/VW Pics/UIG via Getty Images)

The Federal Government has announced plan to fund critical road projects in the country through its Infrastructure Bond Instruments.

Minister of Power, Works and Housing, Mr Babatunde Fashola disclosed this when he received a delegation from Institutional Investors in Abuja.

According to a statement signed by Mr Olusegun Ogunkayode, a Principal Information Officer in the ministry, the delegation was led by Dr Damola Sogunle, the Managing Director of Stanbic IBTC.

Fashola said the use of Infrastructure Bond Instruments to complement government efforts was to fast track the execution of road projects across the country.

He said the use of Tax Relief and Islamic banking “Sukuk” was not enough to provide the needed critical infrastructure in Nigeria.

The minister called for the reorganisation of the housing sector in the country and urged financial institutions to be the vanguard of the reorganisation.

He said Nigeria would borrow a leaf from countries like the United Kingdom that have successfully utilised similar investment practice.


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