By Kadiri Abdulrahman

The Debt Management Office (DMO) says the Federal Government has been able to raise a total of N1.09 trillion through the Sovereign Sukuk since 2017, to support infrastructure development.

The Director-General of the DMO, Patience Oniha, said this on Wednesday in Lagos, during “an all parties meeting” for the issuance of the seventh series of the Sovereign Sukuk.

She said that for the series, the plan is to raise about N300 billion to be used to finance capital projects.

According to Oniha, the meeting presented an opportunity to reflect on the progress that the DMO had made in the use of Sukuk as a means of raising funds for the government.

“We recall that the first Sukuk was issued in September 2017. After extensive marketing, the offer, which was for N100 billion with a tenor of seven years received a total subscription of N105.878 billion.

“Following the modest success of the first Sukuk and the achievement recorded from Sept. 2017 to Dec. 2023 when the last Sukuk was issued, the DMO has raised a total of N1.09 trillion.

“With this amount, over 4,100 km of roads and nine bridges across the six geopolitical zones in NIgeria and the Federal Capital Territory have either been constructed or rehabilitated, ” she said.

Oniha said that the projects had brought substantial benefits, including reduced travel time improved road safety and job creation.

She said that the projects also created improved access to markets for remote farmers, increased access to public services like education and healthcare, and economic development as a whole.

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

She said that the Sukuk had been well accepted as demonstrated by the level of subscription received in the past.

She said that investors got fulfilment of contributing to infrastructure development, and also got a return in terms of income which is paid every six months.

The News Agency of Nigeria (NAN) reports that the financial advisers represented at the meeting include, Lotus Financial Services Limited, Buraq Capital Limited, Stanbic IBTC Capital limited and Greenwich Merchant Bank Limited and Vetiva Capital Management Limited.

They play a crucial role in the issuance of Sovereign Sukuk, assisting the Federal Government of Nigeria through DMO.

Their responsibilities include advising on the structure of the Sukuk, managing the offering process, and facilitating investor participation.(NAN)(www.nannews.ng)

Edited by Sadiya Hamza