Federal Executive Council (FEC) on Wednesday granted approval for the additional share capital granted Nigeria by the International Bank for Reconstruction and Development IBRD, an arm of the World Bank Group which offers cheap loans to middle-income developing countries.
The Minister of Finance, Budget and National Planning , Zaina Ahmed while presenting a memo on additional capital increase for Nigeria by the International Bank for Reconstruction and Development IBRD, announced that Prior to now, Nigeria had a share capital of 1687 shares at the IBRD.
This is just as the Finance Minister disclosed that her Ministry is targeting a total capital releases by December, 2019, saying that already, N650b has been released
President Muhammadu Buhari had while submitting the budget to the National Assembly, in October, indicated that he had given a directive that government should release N600 billion for capital expenditure, by December.
But according to the Minister “ we are already more than that, the target for us is to be able to release up to N900 billion by December but right now we are at about N650 billion capita release so far.”
The Minister stated that FEC approved the new share capital increase which was earlier adopted in October, 2018 raising Nigeria’s share capital by 3230 shares both for general and selected capital increases
Briefing State House Correspondents after the Federal Executive Council FEC meeting, the forth consecutive weekly FEC presided over by Vice President Yemi Osinbajo the Minister stated that the increase, brings Nigeria’s share capital at the Brentenwood institution to a total share capital of $50,637,747.60m.
“This additional subscription by the Bretton Woods institution is necessary to strengthen the county’s position in the global financial architecture” she said
The Ministry also formally announced that Nigeria is now Middle income country based on its Gross Domestic Products GDP $397b and per capita income of $1960 per person per head
“This additional subscription to the Bretton Woods institution by Nigeria is not just desirable but necessary. It will strengthen the country’s position and enhance, as well as our voice in the global financial architecture.
“It is important that we also reported to council that Nigeria is now classified by the World Bank as a middle-class income country by reason of its GDP of over $387b and a per capital income today or as at the end of 2018 of $1,960 per head.
With the increase, Nigeria is now qualified for a Bretton status in the World Bank group, giving the country leverage to access some less restricted resources of the bank both at the IBRB as well as the other windows.
“Subscription to these shares will enhance the future of the status of Nigeria as a middle-income country as well project the image of the country as strong emerging market.
“We are required to at the end of March 2019 to have accepted this offer”
She announced that Nigeria has also accepted the offer adding that “we went to council today to get an approval to submit a memorandum of law to complete the documentation of the subscription process and council approved our prayers”.
Zainab , while also speaking on the poor state of Nigeria roads, stated that the Minister of Works and Housing has a proposed budget of N247 billion for the year 2020 , with greatest component of this budget for the fixing of Nigerian roads.
“ It is true that we are not able to fund the budget 100%, but whenever we release funds for capital projects, the Ministry of Power, the Ministry of Works and Housing is always the priority and also the Ministry of Transport.
“Our fiscal space is tight, resources are limited because revenues are on the performing but at time we have resources”
She however announced that of the funds released, highest proportion goes to Power, Transport, World and Housing.
“And also we have introduced some measures that have seen private sector participants getting involved in road construction. One of these measures is the Road Infrastructure Task Credit Scheme that Mr President approved by Executive Order early this year so far we have 17 companies that are carrying out 19 roads across the six geo-political zones.
“I also want to remind you that for the past two years, we have issued Sukuku bonds. In 2017,it was for the construction of 25 roads. In 2018, 23 roads and there is also another one that is being processed.
“We have a lot of roads in the country but not every road you see is a responsibility of the Federal government. The major arterial roads are the ones that are the responsibility of the federal government.
“Majority of the roads in the country are within the purview and responsibility of States as well as local governments.
“Have we done enough? No, not yet, that is why we are trying to do more including raising special funds to make sure that roads and such other infrastructure are being addressed.
Tony Ailemen, Abuja
