There are indications that total amount raised by the Federal Government, FG, will soon hit N1 trillion mark as the Debt Management Office, DMO, indicates that a fresh N150 billion offer is underway for a successful subscription.
So far the FG has raised N742 billion from Sukuk Bond to fund infrastructure development across the country since the introduction of the funding window
Speaking at a meeting with investors in Abuja, yesterday, Director General, DMO, Ms. Patience Oniha, said that the amount so far raised through the ethical instrument speaks to the investor attractiveness of the bond.
Her words: “Since its introduction in 2017, we have issued Sukuk each year, except 2019 and it has been very rewarding as N742 billion has so far been raised for infrastructure development. The federal government is happy and investors are happy, which explains the growing interests in the instrument.”
The DMO boss said that the FG was determined to ensure value for borrowed money through the project-tied Sukuk, adding, “everyone can see the roads and bridges being constructed or rehabilitated through Sukuk”.
Oniha explained: “Infrastructure plays a vital role in the socio-economic development of Nigeria. It facilitates and accelerates economic development, such that where there are no infrastructures, economic development and growth would be difficult to achieve.
“The government has placed high priority on the rehabilitation and upgrade of existing road networks and construction of new highways, with a view to facilitating the movement of people and goods, thereby contributing to national economic development.
“When investors are coming, they are interested in the infrastructure in an economy. At a point businesses started moving to Accra because of infrastructure. Infrastructure is critical for economic growth and development. Infrastructure is an enabler.
“Sometimes when we talk about infrastructure, we hear comments like ‘government has not done enough.’ It is obvious that the government does not have enough resources to provide the infrastructure we need. That is why the government decided to attract the private sector to be part of funding infrastructure development.
“We introduced Sukuk, which is an ethical instrument, to enable investors who would not invest in the conventional instruments to be able to participate in private sector funding of infrastructure across the country.”
She expressed strong optimism that the current N150 billion Sukuk would be very successful, going by the level of interests shown by both corporate and individual investors.
According to her, the proceeds of the Sukuk VI would be utilized in the construction or reconstruction of infrastructure across Nigeria’s six geopolitical zones.