The Debt Management Office (DMO) has disclosed that the Nigerian Government raised a total of N1.09 trillion through the Sovereign Sukuk since it debuted as a key debt instrument in 2017 for funding critical infrastructure projects, including roads and bridges, across the country.
The Director-General of the Office, Ms. Patience Oniha, made this disclosure on Wednesday, in her address during an “All-parties Meeting” for the issuance of the 7th series of the Sovereign Sukuk to raise approximately N300 billion to finance capital projects.
She said: “We recall that the first Sukuk was issued in September 2017. After extensive marketing, the offer, which was for N100 billion with a tenor of seven years, received a total subscription of N105.878 billion.”
Oniha, who spoke on the high subscription rates to the Sukuk bonds and achievements of the DMO over the years, explained that with the N1.09 trillion raised, over 4,100 kilometres of roads and nine bridges across the nation’s six geopolitical zones and the Federal Capital Territory (FCT) had either been constructed or rehabilitated.
According to her, the projects have benefitted the country in terms of reduced travel time, improved road safety, job creation, and improved market access for remote farmers.
The Director-General further clarified that in addition to those benefits, government had sustained the issuance due to the fact that the Sukuk is project-tied, promotes financial inclusion, and contributes to the development of the domestic financial market.
