The Debt Management Office (DMO), has insisted that the sovereign Sukuk represents a step forward in Nigeria’s drive to develop its infrastructure. This is even as it said that it not only a promise kept, it in line with the Economic Recovery and Growth Plan (ERGP). The Debt Office in a statement yesterday in Abuja, said that Sukuk was a financing instrument that was very appropriate for the development of infrastructure.
According to the Nigeria Infrastructure master plan, Nigeria needs about $3.1 billion over the next 30 years to bridge its infrastructure deficit. The federal government in 2017, raised a N100 billion seven-year debut Sukuk bond for the financing of 25 road projects across the six geopolitical zones of the country. According to the statement, officials of DMO, Ministries of Power, Works and Housing, Finance, and Office of the Accountant-General of the Federation have started inspecting roads being financed with the sovereign Sukuk.
“From the list of road projects made available to the public when the Sukuk was issued, these were major roads that will facilitate the movement of people, goods and services, thereby contributing to economic growth and development.’’ It said that the team visited the AbujaAbaji-Lokoja road, the Obajana-Okene road, the Suleja-Minna road and the Kaduna Eastern Bypass road. It said that during the inspection, the team assessed the progress of work done as well as ongoing rehabilitation and construction works on the roads. DMO said that the team also interacted with the various contractors handling the projects and the inspection revealed that significant amount of work had been done and the contractors expressed their appreciation for Sukuk, which assured them of prompt payment for work done.
“The Sukuk has incentivised the contractors to accelerate work on the selected roads because of the confidence that the government had dedicated funds already to pay them upon completion of milestones. “Of particular significance was the fact that the funds from the Sukuk had made it possible to construct the Okene bypass. “It is a new road which would ensure a safer and more convenient journey for travelers and residents by moving traffic away from the township and reducing congestion on the roads within the town.
“Similarly, the Kaduna Eastern bypass, on whice construction had been delayed due to inadequate funding, will ease traffic within the Kaduna metropolis, while also improving the travel experience for persons transiting through Kaduna to other towns.’’ It also said that the delegation would inspect all the Sukuk-fi nanced roads to confirm that the Sukuk funds had been utilised as planned. DMO added that analysts believe that the debut Sukuk had breathed new life into old projects and provided funding for new ones.
