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The Federal Ministry of Works and Housing declared that N221bn has been disbursed to contractors who finished 71 road projects across the country, under the 2021 SUKUK bond funds. The Ministry refuted claims made by some displeased contractors through an online publication that funds allocated to projects in the 2022 SUKUK fund were being delayed. They further claimed that the funds were being placed into bank accounts “to embezzle accrued interest.” The statement titled “For The Records. Re: Allegation On: “N130bn 2022 SUKUK Fund: Road Contractors Petition Efcc Over Non-payment Of Approved Funds Allocated To Them By Ministry Of Works Staff” was signed by the Director in charge of the office of Permanent Secretary, Folorunsho Esan, on Wednesday.

Esan reiterated that payment for 2021 and 2022 would not be made concurrently as a principle. He further pointed out that the ministry had been utilizing the Sukuk model for project financing since 2017 and had not held funds for project payments at any time. The Director stated that the allegations were a blatant misrepresentation of facts and an attempt to malign the reputation of the Ministry. He also refuted the possibility of any portion of the 2022 SUKUK Fund being warehoused in a bank. Mr. Esan noted that “SUKUK Funds are domiciled in the Central Bank of Nigeria (CBN) and are only released to the Ministry for payment after the necessary processes and approvals are obtained.”

Esan clarified that on completion of the 2022 verification process in early May 2023, the first tranche drawdown in the sum of N19.605 billion would be forwarded to DMO while subsequent tranches would correspond with approved milestones until the N130bn is fully accessed. The Ministry implored the public always to verify their facts and avoid unsubstantiated allegations to prevent wasting taxpayers’ money on energies directed towards more productive ventures.