Sunday, September 19, 2021

Federal Government raises N360bn Sukuk bonds for rehabilitation of roads

Categories

Share

The Federal Government has so far raised N360bn Sukuk bonds for the rehabilitation of economic roads across the country including the Ibadan-Ilorin, Kano-Maiduguri, Enugu-Port Harcourt and other roads.

The Federal Ministry of Works and Housing and the Debt Management Office on Friday said the N360bn has been raised by the government since 2017.

According to the DMO, Sukuk is an investment certificate that represents the ownership interest of the holder in an asset or pool of assets, and this certificate entitles the holder to receive income from the use of the assets.

On why the Federal Government was issuing Sukuk bonds, the DMO explained that it was to fund the construction and rehabilitation of key economic infrastructure projects across the country such as roads.

It said the bonds were used to diversify the sources of government funding and offer ethical investors an opportunity to invest in government issued securities.