Latest News

FG to use N250bn Sukuk proceeds for road projects ― DMO

Published by

The Federal Government has said that the proceeds of the FGN N250 billion series 1V Sukuk issuance would be used to finance key economic roads identified by the Federal Ministry of Works and Housing, Federal Capital Territory Administration (FCTA), and the Ministry of Niger Delta Affairs.

The N250 billion Ijarah Sukuk has a 10-year tenor and a fixed coupon of 12.80 per cent on maturity in 2031.

This was disclosed by the Director-General, Debt Management Office (DMO), Patience Oniha, in Abuja, on Monday, at the media sensitisation to the issuance well as inviting investors within and outside Nigeria to participate in the sovereign Sukuk being issued.

According to the DMO’s DG, all categories of investors, including individuals, financial institutions such as Deposit Money Banks, Insurance companies, Pension Fund Administrators, Assets Management Companies, Non-Interest Financial Institutions, Cooperative Societies, Religious bodies and State Investment Companies are free to invest in the N250 billion Sukuk.

Ms Oniha pointed out that the Federal Government decided to issue the Sukuk fund for the construction and rehabilitation of key economic roads across Nigeria.

She explained that the government opted for Sukuk issuance to offer ethical investors an opportunity to invest in government-issued securities, to achieve a higher level of financial inclusion, raise project-tied funds and deepen the domestic financial markets.

“Rental payments will be credited bi-annually, directly to the investors’ bank accounts as and when due”, stressing that “at maturity, the principal investment will also be credited directly to the bank accounts specified by the investors in their application forms,” the DMO’s DG explained.

The DMO had issued three Sukuk previously in 2017, 2018 and 2020, raising a total of N362.57 billion to finance road projects across the six geo-political zones of the country.

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIF) defines Sukuk as “certificates of equal value representing undivided shares in ownership of tangible assets, usufruct and services or (in the ownership of) the assets of particular projects or special investment activity.”

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

FALSE! Yoruba Not An Official Language In Brazil

Claim: A national newspaper and multiple online platforms claim Brazil has adopted Yoruba as its official language and that the language would be included in primary and secondary schools curriculum.

Verdict: The claim is false. The content of the article published by these online platforms is not new; it has been recirculated several times and has been debunked.FG to use N250bn Sukuk proceeds for road projects ― DMO

FG to use N250bn Sukuk proceeds for road projects ― DMO

Recent Posts

Pursue strategic investments for wealth creation, NSC CEO tasks cooperative society

The Executive Secretary/Chief Executive Officer of the Nigerian Shippers’ Council (NSC), Dr. Akutah Pius Ukeyima…

9 minutes ago

Edo APC Chairman hails Supreme Court ruling on guber election

The Edo State Chairman of the All Progressives Congress (APC), Emperor Jarrett Tenebe, on Thursday…

16 minutes ago

Kano: Police nab 93 suspects over armed robbery, kidnapping, others

The Kano State Police Command has arrested 98 suspects connected to 21 major cases of…

29 minutes ago

JUST IN: Akpabio sacks Natasha as Senate committee chair

In her place, Akpabio named Senator Bassey Aniekun Etim, representing Akwa Ibom-East.

33 minutes ago

UPDATED: Buhari’s popularity won 12.5 million votes for APC in 2015 —Ex-SGF Mustapha

He said: “I do not intend to stir up any controversy. The merger in 2013,…

45 minutes ago

Court nullifies arbitration proceedings against Tempo Energy

The Federal Capital Territory (FCT) High Court in Abuja has nullified the arbitration proceedings at...

51 minutes ago

Welcome

Install

This website uses cookies.