FG to fund 53 road projects with N150bn Sukuk bond

The Federal Government has said that it will deploy the N150 billion that would be raised from the ongoing Sukuk bond issue to fund the construction of 53 road projects across the country.

This was even as it is projected that the total amount raised by the Federal Government through Sukuk would soon hit N1 trillion.

Director General of the Debt Management Office (DMO), Ms Patience Oniha, who disclosed this at an investors’ forum in Abuja, said the 53 roads cover more than 3,000km.

She explained that the revenue generated through the collection of tolls on the roads would be allocated for the specific purpose of repaying Sukuk.

Sukuk is a non-interest, asset-backed bond that is based on the principles of Islamic finance.
Oniha emphasised that the Federal Government’s dedication to value-oriented borrowing continues through project-centred Sukuk, leading to the execution of notable road and bridge projects.

According to her, “the government’s optimism in the over subscription of the Sukuk is based on the fact that the Federal Government has made significant investments in infrastructure development, through which it has managed to raise a total of N742 billion.”

Oniha added: “The massive investment serves as a strong example or evidence of the high level of interest and enthusiasm that investors have shown in Sukuk.

“Infrastructure is an enabler of economic development. Sukuk is one of the strategies for improving infrastructure. 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.

“The funds will be used to finance the rehabilitation of road projects and bridges identified by the implementing agencies of the Federal Government.”