Business & Economy - News - March 19, 2021

SUKUK: Nigerian govt. raised N363bn in 3 years to build roads, says DMO

The Federal Government raised about N362.6 billion within three years through the Sovereign Sukuk initiative for the rehabilitation and construction of major economic roads across the country, the Debt Management Office (DMO) has said.
Also, the DMO said the product range available to investors in the domestic financial market by issuing Sukuk has increased, while several retail investors have been attracted to the financial markets through the initiative.
The DMO disclosed this on Thursday during the official listing of its third Sovereign Sukuk on the floor of the Nigerian Stock Exchange (NSE) and the trading board of the FMDQ Securities Exchange.
The debt management agency said latest listing of N162.557 billion AL IJARAH SOVEREIGN SUKUK is expected to mature in seven years in 2027 at the rate of 11.200 percent.
The agency said since Sukuk was issued it has been massively subscribed to the tune of about N669.124 Billion, or 446 percent, to finance 44 economic road projects across the country’s six geopolitical zones.
With the latest listing, the DMO said investors who are already holding the SUKUK can trade them, while new investors have an opportunity to buy the SUKUK in the secondary market like any other securities.
The issuance of Sovereign Sukuk which began in September 2017 as one of the measures adopted by the Federal Government towards attaining its strategic objective of bridging the infrastructure gap in Nigeria to promote job creation and economic growth.
Following the successful issuance of the N100 billion debut Sukuk in 2017, the DMO said it issued another N100 billion Sukuk in 2018, with the proceeds deployed in the rehabilitation and reconstruction of road projects across Nigeria.
The DMO said with the success of the Sukuk initiative it remained committed to providing funding for the government, as approved from time to time, to finance the development of infrastructure whilst also deepening the domestic financial markets and mobilizing savings.

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