Ms Patience Oniha, Director General of the DMO alongside officials of the Federal Ministry of Power, Works and Housing told stakeholders in Lagos, Port Harcourt and Abuja that the debut N100 billion is dedicated to building critical road infrastructure in the country.
The debut Sovereign Sukuk is an ethical based investment in which rent is based on the investment bi-annually and the principal sum paid at the end of the seven year tenor.
Oniha, at the various stops on the road show, assured potential investors that the sukuk is backed by the full faith of the federal government and was one of the avenues through which it intends to raise funds for capital projects.
“This is one of several efforts to raise funds for specific projects and this is backed by the full faith of the Federal Government. This is a rental product to cater for segment of our society that requires such services.”
The Assistant Director, Planning and Development, of the Federal Ministry of Power, Works and Housing, Mr DanleleYila, listed 25 road projects spread across the six geo-political zones of the country for which the N100 billion sukuk capital will be used.
Some of the projects include the LokoOweto Bridge, dualization of a section of the Abuja-Lokoja road, dualization of the Suleja-Minna road as well as the Kano-Maiduguri road.
Others include dualization of the Kano-Katsina road (Phase 1), rehabilitation of the Onitsha – Enugu Expressway, and the Enugu-Port Harcourt road (section 1-3), dualization of the Ibadan-Ilorin road (section 2).
Tunde Adama of Citibank, one of the placement agents, who spoke after the first session, expressed optimism on the sukuk.
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