The Federal Government has announced its intention to utilize the proceeds generated from its ongoing Sukuk issuance, totaling N150 billion, to finance a total of 53 road projects throughout the country.
The Director General of the Debt Management Office, Ms. Patience Oniha, shared this information during an investors’ forum in Abuja, highlighting that these 53 road projects collectively span over 3,000 kilometers.
She further emphasized that the tolls collected from these roads would serve as the means for repaying the Sukuk, which is an interest-free, asset-backed bond adhering to Islamic finance principles. Oniha reiterated the government’s commitment to pursuing value-driven borrowing through project-focused Sukuk, which has already played a significant role in the realization of various road and bridge projects.
Recognizing the crucial role of infrastructure in fostering economic growth, she underscored, “infrastructure is an enabler of economic development.” Furthermore, she expressed optimism that the N150 billion Sukuk issuance would attract substantial interest from investors, and any excess funds generated would be directed toward other ongoing projects.
She said, “The government and people involved believe in the use of Sukuk and plan to continue offering it every year. The hope is that ethical investors will invest in the Sukuk.”
She extended an invitation to ethical investors, urging them to seize the opportunities within Sukuk and engage in subscribing to this offering. She emphasized the importance of broad participation and underscored that the funds raised through Sukuk VI would be allocated to projects spanning the nation’s six geopolitical regions.
The head of the DMO pointed out that banks are particularly attracted to Sukuk due to its tax-exempt status and the liquidity it provides.
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