Nigeria Issues Sovereign Sukuk to Raise N150 Billion for Infrastructure Development

The Debt Management Office (DMO) of Nigeria on Thursday engaged financial market stakeholders to discuss the issuance of the 6th series of its Sovereign Sukuk programme.

The programme was organized to inform Nigerians and stakeholders about the benefits of investing in Sukuk.The DMO announced on October 3, 2023 that it would offer for subscription a 10-year tenor Sovereign Sukuk for N150 billion at a rental rate of 15.75 per cent.According to Patience Oniha, Director-General of the DMO, the Sovereign Sukuk was initiated in 2017 to help finance the rehabilitation and construction of critical national infrastructure.Oniha said that the Federal Government has raised and deployed N752.557 billion through the Sukuk for .infrastructure development since 2017.

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She added that Sukuk not only helps in infrastructure development but also achieves associated multiplier benefits.“The DMO, through the issuance of Sukuk, has raised and deployed N752.557 billion to the rehabilitation and construction of 4,000 kilometers of roads and bridges across the six geopolitical zones and the Federal Capital Territory (FCT),” Oniha said.

“Apart from infrastructure development, Sukuk encourages financial inclusion by offering ethical investors an opportunity to invest in government securities. It also deepens the domestic financial market and sets a benchmark for corporates and subnationals.”

Oniha assured that the Sukuk was backed by the full faith and credit of the Federal Government.The issuance of the 6th series of Sovereign Sukuk is expected to raise funds for the Federal Government to continue its investment in critical infrastructure development. This will help to boost economic growth and create jobs in Nigeria.

Source: Punchng

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