FG to issue 2nd N100bn Sukuk bond for road construction

THE NIGERIAN GOVERNMENT will issue Sukuk bonds worth N100 billion for the construction of road infrastructure before the end of October 2018, Ummahani Amin, CEO Metropolitan Skills Ltd disclosed last week.

Amin dropped this hint at a two-day training organised by her firm on Sukuk structurisation and management in Abuja in partnership with the Federal Ministry of Finance and Standing Committee for Economic and Commercial Cooperation of the Organisation of the Islamic Cooperation (COMCEC).

According to her, the exercise will be conducted by the Debt Management Office (DMO) on behalf of the federal government.

Proceeds from the Sukuk Bond issuance would be used to construct some roads across the country, just like what the first tranche was used for.

“We are doing the second tranche now because the first one was successful and oversubscribed. N100 billion was involved in the first and the second is on the way.

“So we are looking at the same infrastructure, construction of roads across Nigeria and the six geopolitical zones. This has never happened in the history of Nigeria for infrastructure,” she said.

Amin informed that the essence of the workshop was to create more awareness on the Sukuk bond in Nigeria and West Africa. She added that partners from the Gambia were in attendance so as to sell Sukuk to their government.

Also, Ahmad Dogarawa, who was the key speaker on Sukuk Structurisation and Management, advised the government to explore Sukuk as an alternate and viable source of raising finance.

Dogarawa noted that Islamic Banking also referred to as non-interest and Sharia banking has been embraced as the future of the global economy.