FG Lists 25 Road Projects For N100bn Sukuk Bond Proceeds

BY COBHAM NSA, ABUJA – The Federal Government on Thursday put smiles on the faces of local contractors as it listed 25 key economic road projects of the Federal Ministry of Power, Works and Housing across the country to benefit from the N100 billion Sukuk bond proceeds.

The debut Sovereign Sukuk of N100 billion, issued by government in September 2017, was successfully completed last week and has a tenor of seven years.

Minister of Finance, Mrs. Kemi Adeosun, who presented the N100 billion cheque to her Minister of Power, Works and Housing counterpart, Mr Babatunde Fashola in Abuja, said the Offer was over-subscribed to the tune of N105.87 billion.

She said the milestone was a sign of confidence on the Nigerian economy and the administration of President Muhammadu Buhari, stressing that the Sukuk proceeds will certainly unlock Nigeria’s huge potentials.

“This is the first Sukuk bond issuance for Nigeria. It is about financial inclusion and deepening of our financial markets.

“The proceeds will be used to further support government capital spending for 2017 – the construction and rehabilitation of 25 key economic roads across the six geo-political zones of the country.”

According to the Minister, “The roads will ease commuting, spur economic activities across the country and further close our infrastructural gap.”

By the project conception documents, each geo-political zone is expected to receive the sum of N16.67 billion for road projects with the North Central and South South Zones accounting for five each of the 25 key economic road projects.

The North East, North West and South East zones have four road projects each while the South West zone has three projects on the Sovereign Sukuk proceeds’ funding list.

Speaking at the event, Minister of Power, Works and Housing, Mr. Fashola praised Finance Minister, Director-General of Debt Management Office (DMO), Ms. Patience Oniha and the financial advisers for the successful bond issuance, particularly the painstaking efforts in achieving the milestone.

He assured the Ministry’s contractors of Federal Government’s funding commitment to all its infrastructural projects nationwide.

Also speaking, the Contractors’ representative, Mousa Nahkia expressed their gratitude to President Muhammadu Buhari and the two Ministers for “working day and night to make this a reality”.

Nahkia, who is the Managing Director of RCC Construction Company, said; “Nobody can hide our smiles today, we believe in this country and its economy. This is really a great development and accomplishment We really want to thank President Muhammadu Buhari, the Minister of Finance, Mrs. Kemi Adeosun and the Minister of Power, Works and Housing, Mr. Babatunde Fashola, for increasing our confidence in this country and the Federal Government.” 

ALLOCATION OF SUKUK BOND PROCEEDS FOR ROAD PROJECTS IN SIX GEO-POLITICAL ZONES