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FG hands N100bn Sukuk bond proceeds to Fashola for road projects

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FG hands N100bn Sukuk bond proceeds to Fashola for road projects

The Minister of Finance, Mrs. Kemi Adeosun on Thursday in Abuja handed over a N100 billion Sukuk bond proceed cheque to the Minister of Power, Works and Housing, Babatunde Fashola (SAN), for the financing of 25 road projects across the country.

Issuance of the sovereign Sukuk bond of N100 billion in September by the Federal Government was successfully completed last week and has a tenor of seven years.

Adeosun said at the occasion on Thursday that the oversubscription of the bond to the tune of N105.87 billion was a sign of confidence in the Nigerian economy and the government of President Muhammadu Buhari.

According to her, the Sukuk proceed would unlock the potential 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 support government capital spending for 2017 – the construction and rehabilitation of 25 key economic roads across the six geo-political zones of the country.

“The roads will ease commuting, spur economic activities across the country and further close our infrastructural gap,” she said.

Read also: Following verification, FG rejects N67.41bn debt claim, okays N25.994bn for DisCos

It is expected that each of Nigeria’s six geopolitical zones will receive the sum of N16.67 billion for road projects. While the North-Central and South-South zones accounted for five each of the 25 key economic road projects, 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.
Fashola, speaking at the event 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.

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