DMO Raises N615.557bn Sukuk Funds In 4 Years

The Debt Management Office (DMO) has raised N615.557 billion through Sukuk for the rehabilitation and construction of new roads across the country in four years.

The director-general of DMO, Ms. Patience Oniha, made this known in her presentation entitled: ‘Nigeria Public Debt, Some Considerations’, at the Capital Market Correspondents Association of Nigeria (CAMCAN) 2022 conference in Lagos.

A Sukuk is an Islamic financial certificate that complies with Islamic religious law commonly known as Sharia. Corporations or governments invest capital raised in accordance with Sharia.

Oniha said N615.557 billion had been raised through Sukuk from September 2017 to December 2021, with N365.557 billion deployed to the construction of 1,881km of roads and six bridges.

She stated that the last Sukuk issued in December 2021 targets 71 road projects.

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According to Oniha, some of Sukuk-funded projects are the reconstruction of Bida-Lambata road in Niger State, rehabilitation of Lagos-Ota-Abeokuta road in Lagos and Ogun states and rehabilitation of Enugu-Port Harcourt road section III Enugu-Lokpanta, in Enugu State.

“Others are the rehabilitation and reconstruction of Enugu-Port Harcourt dual carriageway section II (Umuahia-Aba in Abia State) and rehabilitation of Kano-Katsina road Phase I, Kano State, among others.”

She also said a total of N25.69 billion had been raised through sovereign green bonds from December 2017 to June 2019.

The DMO director-general said the funds had been deployed to seven selected projects in various sectors, including renewable energy, agriculture, water, transport and afforestation.

Speaking on the purpose for borrowing, Oniha said governments borrow to finance budget deficits, finance specific projects and refinance maturing debt obligations.