Director General of the Debt Management Office (DMO), Patience Oniha, has stated that the federal government will utilise the ongoing N150 billion Sukuk issuance to fund about 3,000 kilometers of roads infrastructure across the country.
According to her, when completed, the revenue generated through the collection of tolls on the 53 roads would be allocated for the specific purpose of repaying the Sukuk.
She said that the federal government’s dedication to value-oriented borrowing continues through project-centred Sukuk, leading to the execution of notable road and bridge projects.
Oniha further said the government’s optimism in the oversubscription of the Sukuk is based on the fact that the federal government has made significant investments in infrastructure development, through which it has managed to raise a total of N742 billion.
“The massive investment serves as a strong example or evidence of the high level of interest and enthusiasm that investors have shown in Sukuk.
“Infrastructure is an enabler of economic development. Sukuk is one of the strategies for improving infrastructure.
“The government and people involved believe in the use of Sukuk and plan to continue offering it every year. The hope is that ethical investors will invest in the Sukuk.
“The funds will be used to finance the rehabilitation of road projects and bridges identified by the implementing agencies of the federal government,” she said.