DMO Plans N300bn Sukuk Bond Issuance For Infrastructure Projects

The Debt Management Office (DMO) on Wednesday disclosed plans to raise N300 billion through Series Seven (VII) Sovereign Sukuk issuance for Capital projects nationwide.

Director general, DMO, Patience Oniha, disclosed this in Lagos at the all parties meeting for the Series Seven (VII) Sovereign Sukuk issuance.

She said the proceeds will be used to finance capital projects nationwide, which will yield significant benefits as previously outlined.

According to her following the modest success of the first Sukuk and the achievement recorded, from September 2017 to December 2023 when the last Sukuk was issued, the DMO has raised a total of N1.092 trillion.

With this amount, over 4,100 kilometres of roads and 9 bridges across the six geopolitical zones in Nigeria and the Federal Capital Territory have either been constructed or rehabilitated.

“These projects have brought substantial benefits, including reduced travel time, improved road safety, job creation, access to markets by remote farmers, increased access to essential public services like education and healthcare and economic development as a whole,” she said.

She said in addition to those benefits, other reasons for the sustained issuance are the fact that the Sukuk is project-tied, promotes financial inclusion and contributes to the development of the domestic financial market.

Oniha explained Sovereign Sukuk as a means of raising funds for the federal government.

“We all would recall that the first Sovereign Sukuk was issued in September 2017. After extensive marketing, the Offer, which was for N100 billion with a tenor of 7 years, received a total subscription of N105.878 billion, an early indication of the positive reception of the Sukuk.