DMO, World Bank push states’ debt management laws

By Nkiruka Nnorom

The Debt Management Office (DMO) has listed N250billion Sukuk on the Nigerian Exchange Limited (NGX) in furtherance of the efforts by the federal government to bridge the infrastructure gap in the country.

The issue is a 10-year, 13 per cent Ijarah Sovereign Sukuk due 2031.

The Ijarah Sovereign Sukuk was successfully listed on NGX, having fulfilled the conditions set by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN) which stipulated that trading in the instrument would only be permissible after the commencement of works on the road projects scheduled for construction through the Sukuk assets.

This listing, according to the NGX, will facilitate trading of the Sukuk and provide liquidity to investors, while further deepening the Nigerian capital market.

The Ijarah Sovereign Sukuk which was issued on December 29, 2021, would finance the rehabilitation and construction of key economic road projects across the six geopolitical zones in the country.

According to NGX, “The issuance and subsequent listing of the Sovereign Sukuk on the NGX platform underscore the Federal Government’s drive to develop the critical infrastructure needed to unlock economic growth by leveraging innovative and cost-effective financing structures.”

The DMO said the proceeds of the Sukuk would be dedicated to road projects and will enable the government to achieve significant progress in bridging the infrastructure gap in Nigeria.

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