The ministry of Power, Works and Housing has received one hundred billion naira for road projects across the country.
The funds are proceeds from a sovereign Sukuk bond issued last December.
Lara Afolayan reports that a Sukuk is an Islamic bond. It is an investment certificate which represents ownership interest of the holder in an asset or pool of assets.
The Nigerian government successfully issued N100bn ( a hundred billion naira) sovereign Sukuk in December last year. The offer was oversubscribed to the tune of one hundred and thirty two billion naira. The motive behind the initiative was to raise funds for road projects across the country.
The country’s fiscal authorities are now fulfilling the objective for which the Sukuk was raised. The power, works and housing ministry is being offered a cheque for onward payment to contractors. The contractors are expected to construct and fix roads across the country.
Some roads across the country to get a face lift from the Sukuk proceeds, include the Ibadan-Illorin road, Enugu-Port hatcourt expressway, Kaduna eastern bypass and the Kolo Otuoke Bayelsa palm road.
Government is pleased efforts at diversifying funding sources and promoting financial inclusion is yielding results.
The funds are to be released to the power works and housing ministry based on framework agreed with trustees to allow for transparency and accountability in the process.
The Nigerian government issued its first hundred billion naira Sukuk in 2017 to finance twenty five road projects.