DMO inspects roads financed by Sukuk
Officials of the Debt Management Office (DMO), Ministry of Power Works and Housing, Ministry of Finance and Office of the AccountantGeneral of the Federation have started inspection of roads being financed with the Sovereign Sukuk issued in 2017.
The proceeds of the N100 billion Sukuk (a non-interest bond) were designated for the financing of 25 road projects across the six geo-political zones of the country.
From the list of the road projects made available to the public when the Sukuk was issued, these are major roads that will facilitate the movement of people, goods and services, thereby contributing to economic growth and development.
The team visited the Abuja-AbajiLokoja road, the Obajana-Okene road, the Suleja-Minna road and the Kaduna Eastern Bypass road.
The inspection revealed that significant amount of work had been done and the contractors expressed their appreciation for the Sukuk which assured them of prompt payment for work done.
According to information made available, the government delegation will inspect all the Sukuk-financed roads to confirm that the funds have been utilised as planned.
The Sukuk represents a promise kept and a step forward in Nigeria’s drive for the development of infrastructure, which is in line with the Economic Recovery and Growth Plan (ERGP) launched by the Federal Government in 2017.
Presenting the cheque to the Minister of Power, Works and Housing, Mr Babatunde Fashola in Abuja in October 2017, the Minister of Finance, Mrs Kemi Adeosun said the money would be housed in a dedicated account but it would be paid to contractors for the roads which the ministry nominated as beneficiaries as they progress their works.
“This is the first Sukuk for Nigeria, and it is an important development in our financial market because it is about financial inclusion and deepening of our financial market.
“By producing and introducing new products, we are able to get more people in as investors in the future of Nigeria. I am very gratified that the offer was oversubscribed - we got N105.87 billion, but we have taken N100 billion,” Adeosun said.