TheCable

The Debt Management Office (DMO) says Sukuk represents a step forward in Nigeria’s drive for the development of infrastructure, in line with the economic recovery and growth plan (ERGP).

DMO, in a statement on Monday, said Sukuk “made it possible” to construct the Okene bypass and also the resumption of work on the Kaduna Eastern bypass on which infrastructure had been delayed.

The statement read: “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.

“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 travellers and residents by moving traffic away from the township and reducing congestion on the roads within the town.

“Similarly, the Kaduna Eastern bypass, on which 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.’’

The DMO said a federal government delegation would inspect all the Sukuk-financed roads to confirm that the funds had been utilised as planned.

The federal government had 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.