The Federal Government has released the sum of N100bn Islamic sukuk bond for the rehabilitation and construction of 25 major road projects across the six geopolitical zones of the country.
Minister of Finance, Mrs Kemi Adeosun, handed over the N100bn cheque to the Minister of Power, Works and Housing on Thursday in Abuja.
“This is the first sukuk bond issuance for Nigeria. It is about financial inclusion and deepening of our financial markets”.
Mrs Adeosun said that the sukuk proceeds would unlock the potential of Nigeria, adding that it was oversubscribed to the tune of N105.87bn.
“The proceeds will be used to support Government capital spending for 2017 – construction and rehabilitation of 25 key economic roads across the six geopolitical zones of the country”.
“The road will ease commuting, spur economic activities across the country and further close our infrastructural gap”.
The Minister of Power, Works and Housing, Babatunde Fashola, had earlier explained that the sum of N16.7bn would be allocated for road projects to each geopolitical zones across Nigeria.
Fashola, while receiving the cheque, lauded the Finance Minister and the Director General, Debt Management Office, Mrs Patience Oniha, and other Financial Advisors for the bond issuance and the efforts made in achieving the landmark.
Recall that the Federal Government issued the debut sovereign sukuk of N100bn in September, which was successfully completed. The sukuk bond is a non interest bond which has a tenor of seven years.
