… Builds 4,100 km Roads, 9 Bridges with Proceeds
… Set to Raise Fresh N300 Billion
The Federal Government has raised N1.092 trillion from the last six series of Sukuk, a Sharia-compliant financial instrument aimed at attracting ethical investors.
The Director-General of the Debt Management Office (DMO), Ms. Patience Oniha, disclosed this at the All Parties Meeting for the Series VII Sovereign Sukuk in Lagos.
She noted that proceeds from Sukuk have been utilized to construct or rehabilitate 4,100 kilometers of roads and nine bridges across Nigeria’s six geopolitical zones.
“The first Sovereign Sukuk was issued in September 2017. After extensive marketing, the offer, which was for N100 billion with a seven-year tenor, received a total subscription of N105.878 billion—an early indication of the positive reception of Sukuk,” she said.
“Following the modest success of the first Sukuk, and given its impact, the DMO has raised a total of N1.092 trillion between 2017 and December 2023. With this amount, over 4,100 kilometers of roads and nine bridges across the six geopolitical zones and the Federal Capital Territory have been either constructed or rehabilitated.”
Ms. Oniha highlighted the benefits of these projects, including:
Reduced travel time
Improved road safety
Job creation
Better market access for farmers in remote areas
Increased access to education and healthcare services
Overall economic growth
She also emphasized that Sukuk promotes financial inclusion, is asset-backed, and contributes to the development of Nigeria’s domestic financial market.
Ms. Oniha announced that the Federal Government is set to raise N300 billion through the upcoming Series VII Sukuk.
“Just like the previous Sukuk series, proceeds from Series VII will be allocated to capital projects across the country,” she stated.
The meeting was attended by Transaction Advisers, Technical Advisers, Legal Advisers, Issuing Houses, and top DMO management.
