FG raises N360 billion Sukuk for Ibadan-Ilorin, Kano-Maiduguri roads, others

Written by on July 12, 2021

The Federal Government has so far raised N360bn Sukuk bonds for the rehabilitation of economic roads across the country including the Ibadan-Ilorin, Kano-Maiduguri, Enugu-Port Harcourt and other roads.

Documents and response to enquiries by the Federal Ministry of Works and Housing and the Debt Management Office showed that the N360bn has been raised by the government since 2017.

According to the DMO, Sukuk is an investment certificate that represents the ownership interest of the holder in an asset or pool of assets, and this certificate entitles the holder to receive income from the use of the assets.

In the document from the works ministry on the amount raised through Sukuk, the government said, “Three hundred and sixty billion naira plus worth of Sukuk bonds (has been) raised since 2017 for dozens of critical road projects across all six geopolitical zones.”

On why the Federal Government was issuing Sukuk bonds, the DMO explained that it was to fund the construction and rehabilitation of key economic infrastructure projects across the country such as roads.

It said the bonds were used to diversify the sources of government funding and offer ethical investors an opportunity to invest in government issued securities.

The DMO said Sukuk was offered to achieve a higher level of financial inclusion and to serve as a reference for pricing Sukuk issued by other bodies, especially private sector issuers.

Source: PUNCH

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