Reps to probe over N1.242trn Sukuk-funded road projects

The House of Representatives on Wednesday unveiled plans to investigate the sum of N1.242 trillion reportedly raised for the construction of 124 federal roads across the country.

The resolution was passed following the adoption of a motion sponsored by the Chairman of the House Committee on Solid Minerals, Hon. Gaza Gbefwi, who underscored the need for the House to ensure the judicious use of public funds.

In his lead debate, Hon. Gbefwi observed that since 2017, the Federal Government of Nigeria, through the Debt Management Office (DMO), has raised over N1.1 trillion through six Sovereign Sukuk issuances to finance 124 federal road projects spanning 5,820 kilometres across the nation’s six geopolitical zones, with the most recent data from the SEC in December 2024 confirming this amount (approximately $657.6 million at current exchange rates).

“The House recalls that the Sukuk financing breakdown includes N100 billion (2017), N100 billion (2018), N162.557 billion (2020), N250 billion (2021), N130 billion (2022), and N350 billion (2023), with indications from posts on various reports suggesting an additional N150 billion was issued in October 2023, pushing the cumulative total to approximately N1.242 trillion by the end of 2024, pending official DMO confirmation for late 2024 issuances.

“The House observes that despite this significant investment, Nigeria’s road infrastructure remains in a deplorable state, with over 70% of the country’s 200,000-kilometre road network still unpaved, as noted by S&P Global Ratings in January 2024.

“The House is worried that without robust accountability mechanisms, the Sukuk programme risks becoming a conduit for mismanagement or corruption.”

To this end, the House mandated its Committee on Works to conduct a forensic probe into the allocation, expenditure, and outcomes of the N1.242 trillion Sukuk funds raised from 2017 to 2024, identifying instances of diversion, inflation, or contractor noncompliance.

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The House also mandated the Federal Ministry of Works to provide the Committee on Works with detailed real-time records of all Sukuk-funded projects, including financial disbursements, project statuses, and contractor performance as of date, with updates to be provided every quarter.

Similarly, the House mandated its Committee on Works to submit a comprehensive report to the House within six weeks, detailing findings, issues, and proposed remedial measures regarding the issues surrounding Sukuk financing in Nigeria.

Hence, the House mandated the Clerk of the House of Representatives to publish this resolution in the Journal of the National Assembly and the Gazette of the Federal Government of Nigeria in compliance with Sections 88 and 89 of the 1999 Constitution, as amended.

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