• 03 Jan

    DMO: N100b Sukuk Bond to sustain rehabilitation

     

    The second issue of the N100 billion Sukuk Fund is aimed at sustaining the 25 key roads in the six-geopolitical zones, the Debt Management Office (DMO) Director-General, Patience Oniha, has said.

    He spoke at the sovereign Sukuk public offer-investor forum in Lagos.

     

    According to Oniha, the success of the first N100 billion Sukuk Bond issue in 2017 was as a result of the clearer understanding of the financial market, as well as investors, which is arousing the interest of many.

    She recalled that that year, the Sukuk Bond, which recorded 5.8 per cent over-subscription, helped in executing road projects across all the regions of the country, noting that the public’s response to the offer has further affirmed investors’ confidence and created jobs.

     

    The FBNQuest Merchant Bank Limited Deputy Managing Director, Taiwo Okeowo, expressed delight in participating in the initiative, because it would contribute to narrowing the country’s infrastructure deficit.

    The impact of the Sukuk Bond still reverberates across the country. For instance, the House Committee on Works attested to the impact the Bond has had on critical infrastructure, especially in helping the federal government to mobilise a lot of contractors handling various governments’ projects back to site.

     

    The committee Chairman, Ali Wudil, while on tour of some projects mostly executed with the Sukuk Bond in Kano State, revealed that most of projects had been abandoned for years, but that the Sukuk Bond had mobilised the contractors back to site.

     

    “Works are on-going in most of the areas we visited and this is possible because of the Sukuk Bond. Some of these projects were started since 2006 and are not yet completed due to unavailability of funds, which has resulted to review upon review of the projects and you know what that entails. Nevertheless, at committee level, we are satisfied with the level attained and the quality of the jobs being executed,” Wudil said.

    Dantata and Sawoe Project Manager Roy Hungushi, who’s firm is handling the Kano Western By-pass, told the committee that the 26.6-km road awarded since 2007 for N13.2 billion has  escalated to N22 billion due to lack of funds, thereby necessitating the reviews. He said with the Sukuk enabled funding by the government, the company was able to return to site, assuring that with adequate funding, the project would be completed in good time.

     

    Proceed from the Sukuk Bond II will be used for road projects. For instance, in the Southwest, the bond is to be used for reconstructing Benin-Ofosu-Ore-Ajebandele-Shagamu dual carriageway (Phase 3 and dualisating Ibadan-Ilorin road (Section 2).

     

    Three roads were identified in Southsouth.  They include the rehabilitation of Enugu-Port Harcourt road, dualisation of Yenagwa road junction-Kolo-Otuoke Bayelsa Palm and that of Lokoja-Benin road (Section 2-4).

     

    In the Southeast, Onitsha-Enugu Expressway and the Enugu-Port Harcourt road (Section 1-3) would be rehabilitated. While in Northcentral, Loko Oweto Bridge would dualised, Abuja-Lokoja road (Section 1 and 4), Suleja-Minna road (Phase 2) and Lokoja-Benin road (Section 1) would be dualised.

    In the Northeast, Kano-Maiduguri road (Section 2-5), , northwest, Kano-Maiduguri road (Section), Kano-Kastina road (Phase 1) would be also be dualised and  Kano Western bypass and Kaduna Eastern bypass would be constructed.

     

    Subscribers can purchase N1,000 per unit subject to a minimum subscription of N10,000 and in multiple of N1,000 with FBNQuest. Islamic Wealth Manager, Lotus Capital, manages the sales.


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