In a move to accelerate infrastructure development, the federal government has unveiled plans to raise N150 billion through an Islamic Sukuk bond auction targeted at infrastructural development.
Director General, Debt Management office (DMO) Patience Oniha who made this announcement during an investors’ forum designed to garner support for the federal government’s latest debt issuance said the fund raised will be directed toward financing of 53 vital road projects across the nation.
Stating the government’s intention to generate revenue for Sukuk bond repayment through road tolls, she said Sukuk, a non-interest, asset-backed bond adhering to Islamic finance principles, has gained prominence as a means to fund critical infrastructure projects.
Oniha reaffirmed the government’s commitment to responsible borrowing, emphasizing the project-oriented nature of the Sukuk bonds, which have already contributed to tangible advancements in road and bridge construction.
Recognising the pivotal role of infrastructure in driving economic growth, Oniha stated, “Infrastructure is an enabler of economic development.”
Expressing confidence in the success of the N150 billion Sukuk issuance, Oniha anticipates oversubscription, with any surplus funds earmarked for other essential projects. She emphasized the government’s enduring commitment to utilizing Sukuk bonds as an annual financial instrument, appealing to ethical investors to participate actively.
The DMO Director-General encouraged broad-based participation in Sukuk VI, highlighting that its proceeds would fund projects across Nigeria’s six geopolitical zones.
