19th December, 2022
The Debt Management Office (DMO) has raised N615.557 billion through Sukuk for road rehabilitation and construction throughout the country in four years.
Ms Patience Oniha, Director-General of the DMO, stated this in her presentation titled “Nigeria Public Debt – Some Considerations,” which took place at the Capital Market Correspondents Association of Nigeria (CAMCAN) 2022 conference in Lagos.
From September 2017 to December 2021, N615.557 billion was raised through Sukuk, according to Oniha.
She stated that N365.557 billion had been spent on the construction of 1,881 kilometres of roads and six bridges.
“The last Sukuk issued in December 2021 targets 71 road projects,” Oniha said.
She mentioned the reconstruction of the Bida-Lambata road in Niger State, the rehabilitation of the Lagos-Ota-Abeokuta road in Lagos and Ogun states, and the rehabilitation of the Enugu-Port Harcourt road section III Enugu-Lokpanta in Enugu State as Sukuk-funded projects.
Others include the rehabilitation and reconstruction of the Enugu-Port Harcourt dual carriageway section II Umuahia-Aba in Abia State and the Kano-Katsina Road Phase I in Kano State.
She also stated that N25.69 billion had been raised through sovereign Green bonds from December 2017 to June 2019.
The funds, according to the director-general, have been allocated to seven selected projects in various sectors such as renewable energy, agriculture, water, transportation, and afforestation.
Oniha stated that governments borrow to finance budget deficits, and specific projects, and to refinance maturing debt obligations.
She thanked the Debt Management Office (DMO) for its years of assistance to the Exchange.
“Exchange always visits the DMO for different proposals and they are always granted. We hope the joint collaboration and support will continue because it is very key to the debt capital market,” she added.