Stockbrokers urge public to invest in FG’s Sukuk Bond

The Minister of State for Petroleum and Alternate Chairman of the NNPC Board, Mr. Timipre Sylva has extended good wishes and hearty congratulations to the members of the reconstituted Board of the Nigerian National Petroleum Corporation (NNPC).

In a statement, the minister also praised President Muhammadu Buhari for the quality of his choices for the membership of the NNPC Board; as well as for the timeliness of the appointment.

The members as announced by the Presidency include Mohammed Lawal (North West), Tajudeen Umar (North East), Adamu Mahmood Attah (North Central), Senator Magnus Abe

The Chartered Institute of Stockbrokers (CIS) has urged Nigerians to support the Federal Government’s growth initiatives by subscribing to its N150 billion Sukuk Bond offer to the investing public.

Specifically, the Federal Government has announced that proceeds of Sukuk would be utilised for execution of road projects in the six geopolitical zones in Nigeria as a critical infrastructure for enhanced rapid development of the economy.

The bond attracts 11 per cent interest and minimum subscription of N10,000 in order to encourage retail investors.

A statement jointly signed by the institute’s President, Mr. Olatunde Amolegbe, and the Registrar/ Chief Executive, Mr. Adedeji Ajadi, CIS advised the investing public to partner with stockbrokers to take advantage of investing in Sukuk to boost their cash flow and assist the Federal Government in in its effort to invest in road infrastructure.

“The institute hereby encourages investors to approach their stockbrokers to learn more about this instrument prior to making their investment decision. Stockbrokers are very accessible and they are professionals, equipped with skills and competencies in evaluating the risk and returns associated with such an instrument and will be able to guide investors accordingly.

“Sukuk Ijarah is a fixed income security backed the Federal Government. This makes it an investment without risk as repayment of investors is guaranteed by the full faith and credit of the Federal Government of Nigeria, hence, the instrument as a gild hedge. Sukuk is highly sought after by ethical investors. It provides a regular bi-annual tax-free payment for the period of the instrument while principal will be paid at the end of maturity period which is seven years” the institute added (South South), Dr Stephen Dike (South East), and Pius Akinyelure (South West).

In his capacity as Minister of State and Alternate Chairman of the NNPC Board which membership also includes the GMD of the NNPC and Permanent Secretary of the Ministry of Finance, Sylva assured the President of his readiness to work with the new Board Members to deliver on the key objectives in the Oil and Gas sector as set by the President.

These objectives include bringing down the cost of production of crude oil, eliminating vandalism, improving the National Crude Oil Reserve and passage of the PIB Bill, among others.