FG approves floating of bond by FCT to pay N420bn debt

Tony Ailemen, Abuja

Worried over the heavy indebtedness to the tune of N420 billion, the Federal Executive Council (FEC) on Wednesday approved the floating of bond for the Ministry of the Federal Capital Territory Administration in order for it to pay its debts.

FEC, in addition, on Wednesday approved plans by the FCT Administration to toll the central lane of the Abuja-out-road and its network to raise about N49 billion to complete the projects.

Bala Mohammed, Minister of the Federal Capital Territory, disclosed these while briefing State House correspondents after the weekly cabinet meeting presided over by President Goodluck Jonathan.

The FCT minister, who briefed newsmen with Information Minister, Labaran Maku, said the indebtedness occurred in the last 20 years and that FEC through the Coordinating Minister for the Economy and Minister of Finance, Ngozi Okonjo-Iweala, has approved the floating of the bond after the necessary legal framework was put in place.

“The debt is not just now, but over 20 years. We have a debt of N420 billion and I have craved the indulgence of the coordinating minister for the economy and she has agreed and council has noted our recommendation to float an FCT development fund after we have established a sound legal framework with the establishment of FCT Revenue Board to float that bond so that we can pay our indebtedness and do new projects and programmes”.

He disclosed that the FCT was trying to get alternative funding from other sources including bilateral and multilateral organisations.

 According to him, the FCT is under serious pressure due to influx of people, saying this has put the population at around five million and has stretched the infrastructure provided for only about a million people. “Both Nigerians and non-Nigerians now gravitate to the FCT.

“We have developed a robust and credible business plan, a cash flow that will enable us on a broader spectrum make sure that we service our obligations minimally”.

“We are heavily indebted. Our responsibilities are many and multidimensional and that is why we are trying to leverage on the private sector for some private public partnership projects and programmes”.

The FCDA already has accessed private sector investment to the tune of $4.6 billion under the current administration which it has committed into various infrastructural projects like the World Trade Center that is 75 percent nearing completion, Abuja Industrial Park.

Eight new districts under the land swap arrangement were recently put up to develop estate which it hopes to use to pay off the private sector investors involved in the development.