The Federal Government of Nigeria has announced its intention to use the net proceeds from its ongoing N150 billion Sukuk issuance to fund 53 road projects spanning more than 3,000 kilometers across the country. This disclosure was made by Ms. Patience Oniha, the Director-General of the Debt Management Office (DMO), during an investors’ forum in Abuja.
The Sukuk, which is a non-interest, asset-backed bond based on the principles of Islamic finance, will be repaid using tolls collected from the funded roads. The Federal Government aims to prioritize value-driven borrowing through project-focused Sukuk to support infrastructure development.
Ms. Oniha stressed the pivotal role of infrastructure in economic growth, stating, “Infrastructure is an enabler of economic development.” She expressed optimism that the N150 billion Sukuk would be oversubscribed, and any additional funds raised would be used for other available projects.
The Director-General invited ethical investors to consider the opportunities presented by Sukuk and encouraged widespread participation. The proceeds from Sukuk VI will be allocated to projects in all six geopolitical zones of Nigeria.
Furthermore, Ms. Oniha noted that banks are interested in Sukuk due to its tax-exempt status and the liquidity it provides, making it an attractive investment option for financial institutions.