DMO, World Bank push states’ debt management laws

By Emma Ujah

The N100 federal government Sukuk put on offer has recorded about 165 percent oversubscription. 

The Debt Management Office (DMO) disclosed this in a statement on its website,  yesterday. 

The Offer for N100 Billion opened on November 21, 2022 and was supported by wide public sensitization to encourage subscription from diverse investors, particularly the retail investors. 

It said, “The initial Offer size of N100 billion was upsized to N130 billion due to the over 165% Subscription level.”

The Sukuk was issued at a Rental Rate of 15.64% per annum. 

The latest exercise brings the total Sovereign Sukuk Issuance to N742.557 billion as at date.

The DMO said that the level of subscription was evidence of investors’ confidence in the use and impact of Sukuk in the construction and rehabilitation of road infrastructure across the country. 

The proceeds of the 2022 Sovereign Sukuk, like the previous Sukuk Issue Proceeds, will be used solely for the construction and rehabilitation of key road projects through the Federal Ministry of Works and Housing and the Federal Capital Territory Administration.

The agency appreciated all the investors (Retail Investors, Banks, Pension Fund Administrators, Assets/Fund Managers, Insurances Companies, Ethical Funds, Takaful Operators/Non-Interest Banks, Stockbrokers, Government Agencies, High Net Worth Individuals, Trustees and Unit Trusts) who have continued to support the Federal Government’s infrastructure development efforts through Sukuk financing. 

It said, “The strong participation of retail investors, ethical funds and non-interest financial institutions in this Sukuk Offering, attest to the fact that the Government’s objective of promoting financial inclusion through admitting more retail investors and ethical funds into the financial system is being achieved.”

It promised to sustain the laudable achievements recorded so far in the use of Sukuk Issue Proceeds for the construction and rehabilitation of Nigerian roads, and thereby, continue to enhance ease of commuting and doing business, safety on our roads, job creation, economic growth, and prosperity of our nation.

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