THE TIDE NEWS

With the latest N250billion Sukuk, the Debt Management Office (DMO), has successfully brought to close, the sum of N3.143trillion domestic borrowing contained in 2021 budget.

All of the domestic borrowings had been realised prior to now say for N250billion, whose offer was unveiled to both institutional and private investors at an investors’ forum in Abuja, yesterday.

Addressing investors and media in Abuja, Director-General of DMO, Ms. Patience Oniha noted that unlike previous Sukuk bond offer that had only Federal Ministry of Works and Housing as sole government’s agency to utilise proceeds for road construction, the N250billion Sukuk has two other ministries, Federal Capital Territory (FCT) and the Ministry of Niger Delta Affairs.

Amongst roads listed for construction by Federal Ministry of Works and Housing, include, Abuja-Lokoja road section iv (Koton Karfi-Lokoja); dualisation of Obajana junction to Benin phase 2: section 1 (Obajana junction to Okene); construction of Oju/Loko-Oweto bridge to link Loko and Oweto with approach roads; Makurdi–Naka–Adoka–Ankpa Eoad in Benue State; construction of Baro Port to Gulu town in Niger State and reconstruction of Nasarawa-Loko road in Nasawara State section, amongst others.

The ministry has road projects to construct across the six geo political zones of the country.

For FCT, some of the road projects to be constructed with its share of N37billion Sukuk include, to construct southern parkway from Christian Centre (S8/9) to Ring Road I (RR I); completion of roads B6, B12 &Circular Road, Abuja Central Area, rehabilitation and expansion of outer southern expressway from Villa Roundabout to OSEX/Ring Road 1 and (RR1) junction, among others.

Ministry of Niger Delta Affairs, with N75billion Sukuk proceeds will carry out dualisation Of East-West Road (Section II-I) Port Harcourt-Ahoada, 47Km; dualisation of East-West Road (Section II-II) AhoadaKaiama, 54Km; upgrading of 15km of section III from PortHarcourt-Eleme Junction to Onne, Port Junction, amongst other roads to be constructed.

Giving background to the Sukuk offer in an interview with journalists, Ms. Oniha gave overview of current and previous Sukuk bond issuance by DMO.

“The purpose of today’s event is to achieve two objectives: sensitise the media on issuance of fourth Sukuk as well as to invite investors within and outside Nigeria to tell them about sovereign Sukuk we are about to issue.

“By a way of background, the DMO had issued three Sukuk previously- 2107, 2018 and 2020, raising a total of N362.57billion to finance road projects across the six geo political zones of the country. That has been extremely successful and has both the DMO as the face of government for borrowing and others. The average citizen on the road has been impressed with what the Sukuk has contributed to the economic growth and development.”