The Debt Management Office (DMO) stated that the goals of its Sukuk bond offerings are to advance financial inclusion, expand the financial market, and upgrade road infrastructure.
The Director-General of the DMO, Patience Oniha, said this while addressing journalists in Abuja.
She spoke against the backdrop of the recently announced N100 billion Ijarah Sukuk bonds offered by the DMO.
She stated that the Sukuk bond is significant because it allows raising that quantum of funds just for roads and bridges.
She said, “The Sukuk has become a product that sells itself, but we will be happy to have many more people invest in it. We have several other products that local and foreign investors can invest in. Still, the Sukuk has an added advantage in financing infrastructure, driving retail investors and promoting financial inclusion.”
“We are developing the financial market and giving Nigerians more investment opportunities, ” she said.
She added that the Sukuk is a product that Nigerians are demanding.
“Even the contractors are interested because they want to work, and once they are assured of payment, they go to the site and begin to work, ” she said.
Sukuk is an Islamic liquidity management instrument used by many governments and corporations to finance big projects.
Since the establishment of the initiative in Nigeria in September 2017, the DMO has issued three Sovereign Sukuk in 2017, 2018 and 2020.
For the Record
The Debt Management Office (DMO), on behalf of the Federal Government, announced the offering of N100 billion Ijarah Sukuk bonds for subscriptions; the bonds are offered at 15.64% per annum will be due in 2032.
The Ijarah Sukuk, like the FGN bonds and FGN savings bonds, constitutes part of the domestic component of government borrowings. Since it was introduced in 2017, it has provided N612,557 billion for the Federal Government, which has helped in funding 71 roads and six bridges measuring 1,881 kilometres across the country