FG spends N1trn Sukuk Proceeds to 4,100 km Road Project

Lagos, Nigeria — The Federal Government said N1.092 trillion raised from the last six series of Sukuk Bonds has been used to construct or rehabilitate 4,100 kilometres of roads and nine bridges, across the six Geo-political zones of the country.

The Director-General of the Debt Management Office (DMO), Ms. Patience Oniha, disclosed this at the All Parties Meeting for the Series VII Sovereign Sukuk in Lagos.

The first Sovereign Sukuk which was issued in September 2017 for N100 billion, with seven years tenor, received a total subscription of N105.878 billion, an early indication of the positive reception of the Sukuk.

Oniha, while addressing the stakeholders, said, “Following the modest success of the first Sukuk and the achievement record, from 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 nine bridges across the six Geopolitical zones in Nigeria and the Federal Capital Territory have either been constructed or rehabilitated.”

She added that the projects have brought substantial benefits to Nigerians, 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, as well as, economic development as a whole.

She stated: “In addition to those benefits, other reasons for the sustained issuance are the fact that Sukuk is proct-tied, promotes financial inclusion and contributes to the development of the domestic financial market.”

Oniha, who said that investors in the first Sukuk had been paid, last year, disclosed that the FG was targeting N300 billion from the Series VII Sukuk.

She said that just like the earlier series, proceeds of Series VII would be spent on capital projects across the country.

Margret Oshinowo | March 28, 2025