Reps Commence Forensic Probe Into N1.242trn Sukuk Funds

The House of Representatives has resolved to conduct a forensic investigation into the allocation, expenditure, and outcomes of the N1.242 trillion Sukuk funds raised between 2017 and 2024 to identify instances of diversion, inflation, or contractor non-compliance.

This was sequel to the adoption of a motion of urgent public importance moved by Hon. Gaza Gbefwi (SDP, Nasarawa) at plenary on Wednesday.

Moving the motion, Gbefwi said that since 2017, the Federal Government, through the Debt Management Office (DMO), has raised over N1.1 trillion through six Sovereign Sukuk issuances to finance 124 federal road projects spanning 5,820 kilometres across the nation’s six geopolitical zones.

The lawmaker informed that the most recent data from the Security and Exchange Commission (SEC) in December 2024 confirmed the amount (approximately $657.6 million at the current exchange rates).

He recalled that; „the Sukuk financing breakdown includes N100 billion (2017), N100 billion (2018), N162.557 billion (2020), N250 billion (2021), N130 billion (2022), and N350 billion (2023), with indications from posts on various reports suggesting an additional N150 billion was issued in October 2023, pushing the cumulative total to approximately N1.242 trillion by the end of 2024, pending official DMO confirmation for late 2024 issuances.

“Despite this significant investment, Nigeria’s road infrastructure remains deplorable, with over 70% of the country’s 200,000-kilometer road network still unpaved, as noted by S&P Global Ratings in January 2024.”

Gbefwi expressed worry that the Sukuk program risks becoming a conduit for mismanagement or corruption without robust accountability mechanisms.

The House, on adopting the motion, mandated the Committee on Works to conduct the forensic probe and asked the Ministry of Works to provide the panel with detailed real-time records of all Sukuk-funded projects, including financial disbursements, project statuses, and contractor performance as of date, to be updated every quarter.

It also mandated the Committee on Works to submit a comprehensive report to the House within 6 weeks detailing findings, issues, and proposed remedial measures regarding the Sukuk financing in Nigeria.