In just four years, the Debt Management Office (DMO) has successfully issued Sukuk totalling N615.557 billion, which is used to repair and build new roads around the country.

At the Capital Market Correspondents Association of Nigeria (CAMCAN) 2022 conference in Lagos, Ms Patience Oniha, the Director-General of DMO, revealed this information in a presentation titled “Nigeria Public Debt – Some Considerations.”

From September 2017 to December 2021, Oniha claimed, a total of N615.557 billion would have been raised via Sukuk.

She mentioned that N365.557 billion was used to build 1,881 kilometres of roads and six bridges.

According to Oniha, “the 71 road projects were funded by the last Sukuk issued in December 2021.”

She named the reconstruction of the Bida-Lambata road in Niger State, the rehabilitation of the Lagos-Ota-Abeokuta road in both Lagos and Ogun states, and the rehabilitation of the Enugu-Port Harcourt road section III Enugu-Lokpanta in Enugu State as just some of the projects that Sukuk has funded.

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Other projects include the reconstruction of the Kano-Katsina Road Phase I in Kano State and the renovation of the Enugu-Port Harcourt dual carriageway section II Umuahia-Aba in Abia State.

Islamic financial certificates, known as Sukuk, are issued per Sharia, the Islamic legal code.

It entails financing strategies and investment vehicles that adhere to Shariah law, whether used by private companies or governmental entities.

Additionally, she mentioned that between December 2017 and June 2019, a total of N25.69 billion was collected through sovereign Green bonds.

The Director-General reported that the money was allocated to seven initiatives: renewable energy, agriculture, water, transportation, and reforestation.

Oniha, when discussing the reasons for borrowing, said that governments do so to close budget gaps, fund special initiatives, and pay off existing debt.