The Federal Government has raised N360bn Sukuk bonds for the reconstruction of major roads across the country including the Ibadan-Ilorin, Kano-Maiduguri, Enugu-Port Harcourt and other roads.
Documents and response to enquiries by the Federal Ministry of Works and Housing and the Debt Management Office on Friday showed that the N360bn has been raised by the government since 2017.
According to the DMO, Sukuk is an investment certificate that represents the ownership interest of the holder in an asset or pool of assets, and this certificate entitles the holder to receive income from the use of the assets.
In the document from the works ministry on the amount raised through Sukuk, the government said, “Three hundred and sixty billion naira plus worth of Sukuk bonds (has been) raised since 2017 for dozens of critical road projects across all six geopolitical zones.”
On why the Federal Government was issuing Sukuk bonds, the DMO explained that it was to fund the construction and rehabilitation of key economic infrastructure projects across the country such as roads.
It said the bonds were used to diversify the sources of government funding and offer ethical investors an opportunity to invest in government issued securities.
It said some of the roads where the Sukuk funds were being deployed in the six geopolitical zones of Nigeria include the Ibadan-Ilorin Road (Oyo-Ogbomoso); Kolo-Otuoke-Bayelsa-Palm Road (Yenegwe Road Junction); and Enugu-Port Harcourt Expressway (Enugu Lokpanta).
Others include Kaduna Eastern By-Pass, Kano-Maiduguri Road (Potiskum-Damaturu), and Bridge works for the Loko-Oweto Bridge over River Benue, among others.
