N150bn Sukuk Investment to Fund 53 Road Projects

The federal government announced that it will use the net revenue from its ongoing N150 billion Sukuk bond issuance to fund 53 road projects in Nigeria.

Mrs Patience Oniha, the DG of the Debt Management Office, disclosed this at the investor's forum on Thursday in Abuja, where she noted that the funds will cover 53 roads, which is over 3,000km.

She further stated that the tolls collected from the roads will be used to repay the Sukuk. Sukuk is a non-interest, asset-backed bond that is used primarily for Islamic finance.

Oniha said that the federal government remains committed to value-driven borrowing through project-focused Sukuk, which has assisted in different road and bridge projects.

Recognizing infrastructure’s pivotal role in economic growth, she stated, “Infrastructure is an enabler of economic development.”

She believes that the N150 billion Sukuk will yield more, and the extra funds recovered will be used to fund other available 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.”

Also in the meeting, she urged investors to take advantage of the opportunities available in Sukuk and subscribe to the offer. However, she also invited the general public to participate, highlighting that Sukuk VI’s revenue will fund projects across the six geopolitical zones.