March 26, 2023

The Federal Government on Thursday released the proceeds of the N100 billion Sukuk bond for 25 road projects across the country.

The Minister of Finance, Mrs. Kemi Adeosun, handed over the N100 billion proceeds cheque to the Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola, in Abuja.

The federal government had issued the sovereign debut Sukuk of N100 billion in September, which was successfully completed last week.

The Sukuk bond has a tenor of seven years.

Adeosun said the offer was oversubscribed to the tune of N105.87 billion.

She also said the milestone was a sign of confidence in the Nigerian economy and the administration of President Muhammadu Buhari.

The minister added that the Sukuk proceeds would unlock the potentials of Nigeria.

She said: “This is the first Sukuk bond issuance for Nigeria. It is about financial inclusion and deepening of our financial markets. The proceeds will be used to further support government capital spending for 2017 – the construction and rehabilitation of 25 key economic roads across the six geo-political zones of the country.”

“The roads will ease commuting, spur economic activities across the country and further close our infrastructural gap.”

“Each of the geo-political zones of the country is expected to receive the sum of N16.67 billion for road projects in their respective zones.

The North Central and South- South Zones accounted for five each of the 25 key economic road projects, while the North East, North West and South East have four road projects each.

“Three projects are to receive funding from the Sovereign Sukuk proceeds in the South West Zone.”

Earlier, Fashola commended the Finance Minister, the Director-General of Debt Management Office, Ms. Patience Oniha and the financial advisers for the bond issuance for their painstaking efforts aimed at realising the milestone.

He assured the ministry’s contractors that the federal government was committed to the funding of its infrastructural projects across the country.

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