By Emma Ujah, Abuja Bureau Chief

The Debt Management Office (DMO) has opened the offer for a new N250 billion Sovereign Sukuk being raised by the federal government towards the development of road infrastructure, across the country.

This Sovereign Sukuk, a fourth to be issued by the Debt Management Office (DMO) since its first Sukuk issuance in September 2017, is for a Tenor of ten (10) years at a Rental Income of 12. 80 percent per annum, to be paid half-yearly.

The DMO said in a statement, this afternoon, that the offer would close on December 22, 2021.

So far, through the issuance of Sovereign Sukuk in 2017, 2018 and 2020, the DMO has raised a total sum of ₦362.57 Billion which has been deployed to the rehabilitation and construction of critical economic road projects in the six geo-political zones.

According to the DMO, “The impact of the Sovereign Sukuk on road infrastructure in terms of job creation, travel time, safety and movement of goods have made the Sukuk a beneficial financial instrument for financing economic growth and development.

“Institutions, individuals, associations and cooperative societies can invest in the Sovereign Sukuk thereby supporting the DMO towards raising project-tied funds and promoting financial inclusion.”

The DMO commenced the issuance of Sukuk in September 2017 as a strategic initiative to support the development of infrastructure, promote financial inclusion and deepen the domestic securities market.

Subsequent to the debut Sovereign Sukuk in 2017 in which N100 billion was raised to finance the rehabilitation and construction of twenty-five (25) road projects across the six (6) geopolitical zones, the DMO issued a Sukuk for N100 billion in 2018 and another for N162.557 billion in 2020.

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The proceeds of these two (2) Sukuk issuances were also deployed to twenty-eight (28) and forty-four (44) road projects, across the country.

According to the DMO, the ethical instrument has been highly accepted among investing members of the public who have also commended the organisation and the federal government for the initiative.

Since the debut Sovereign Sukuk in September 2017 whose benefit in terms of improved road infrastructure within and outside cities in Nigeria is clearly visible, the Sukuk has been commended as a viable instrument for financing infrastructure.  

“The use of Sukuk, has enabled timely completion of the designated projects whilst also delivering the multiplier effects associated with construction of capital projects such as roads,” the organisation said. 

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