The Federal Government has released the proceeds of the N100 billion Sukuk bond to 25 key economic road projects of the Federal Ministry of Power, Works and Housing across the country.
Finance Minister, Kemi Adeosun, on Thursday, handed over the N100 billion proceeds cheque to the Minister of Power, Works and Housing, Babatunde Fashola at a ceremony held in Abuja.
“The Federal Government had issued the debut Sovereign Sukuk of N100 billion in September 2017, which was successfully completed last week. The Sukuk bond has a tenor of seven years,” a statement from the ministry read.
Adeosun, who disclosed that the offer was oversubscribed to the tune of N105.87 billion, pointed out that the milestone was a sign of confidence in the Nigerian economy and the administration of President Muhammadu Buhari.
She added that the Sukuk proceeds would unlock the potentials of Nigeria.
“This is the first Sukuk bond issuance for Nigeria. It is about financial inclusion and deepening of our financial markets.
“The proceeds will be used to further support government capital spending for 2017 – the construction and rehabilitation of 25 key economic roads across the six geo-political ones of the country.
“The roads will ease commuting, spur economic activities across the country and further close our infrastructural gap,” the Minister stated.
Each of the geo-political zones of the country is expected to receive the sum of N16.67 billion for road projects in their respective zones.
The North-Central and South-South zones accounted for five each of the 25 key economic road projects, while the North East, North West and South East have four road projects each. In the South-West zone, three projects are to receive funding from the Sovereign Sukuk proceeds.
Minister of Power, Works and Housing, commended the Finance Minister, the Director-General of Debt Management Office, Ms. Patience Oniha and the financial advisers for the bond issuance for their painstaking efforts in realising the milestone.
Fashola assured the ministry’s contractors that the Federal Government was committed to the funding of its infrastructural projects across the country.
The Representative of the contractors, Mousa Nahkia, expressed the contractors’ gratitude to President Muhammadu Buhari and Ministers Adeosun and Fashola for “working day and night to make this a reality.”
Nahkia, who is the Managing Director of RCC Construction Company also stated that: “Nobody can hide our smiles today, we believe in this country and its economy. This is really a great development and accomplishment We really want to thank President Muhammadu Buhari, the Minister of Finance, Mrs. Kemi Adeosun and the Minister of Power, Works and Housing, Mr. Babatunde Fashola, for increasing our confidence in this country and the Federal Government.”
BREAKDOWN OF ALLOCATION OF SUKUK BOND PROCEEDS FOR ROAD PROJECTS IN SIX GEO-POLITICAL ZONES
Of Sukuk Bond