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The Federal Government of Nigeria has released the proceeds of the #100 billion Sukuk bond for 25 key economic road projects of the Federal Ministry of Power, Works and Housing across the country.
The Minister of Finance, Mrs. Kemi Adeosun on Thursday, 5th October 2017 in Abuja the country's capital territory, handed over the #100 billion proceeds cheque to the Minister of Power, Works and Housing, Mr. Babatunde Fashola.
The FG had issued the debut Sovereign Sukuk of #100 billion in September 2017, which was successfully completed last week. It's noteworthy that the Sukuk bond has a tenor of seven years.
Mrs. Adeosun, who disclosed that the offer was oversubscribed to the tune of N105.87 billion, said the milestone was a sign of confidence on the Nigerian economy and the administration of President Muhammadu Buhari.
She added that the Sukuk proceeds would unlock the potentials of Nigeria. “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.
“The roads will ease commuting, spur economic activities across the country and further close our infrastructural gap,” the finance minister stated.
The North-central and South-south zones accounted for five each of the 25 key economic road projects, while the North-east, North-west and South-east have four road projects each. Three projects are to receive funding from the Sovereign Sukuk proceeds in the South-west zone.
Earlier, the Minister of Power, Works and Housing, Mr. Fashola,commended the finance minister, the Director-General of Debt Management Office, Mrs. Patience Oniha, and the financial advisers for the bond issuance for their painstaking efforts realising the milestone.
Mr. Fashola assured the ministry’s contractors that the FG was committed to the funding of its infrastructural projects across the country.
The representative of the contractors, Mr. Mousa Nahkia expressed the contractors’ gratitude to President Muhammadu Buhari, Mrs. Adeosun and Mr. Fashola for “working day and night to make this a reality”.
“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,” stated Mr. Nahkia, who is the Managing Director of one of the benefiting construction firms, RCC Construction Company.
BREAKDOWN OF ALLOCATION OF SUKUK BOND PROCEEDS FOR ROAD PROJECTS IN SIX GEO-POLITICAL ZONES IN NIGERIA
S/N
|
GEO-POLITICAL ZONES
|
NUMBER OF ROAD PROJECTS
|
ALLOCATION OF SUKUK BOND PROCEEDS
N’ Billion
|
1
|
North Central
|
5
|
16.67
|
2
|
North East
|
4
|
16.67
|
3
|
North West
|
4
|
16.67
|
4
|
South East
|
4
|
16.67
|
5
|
South South
|
5
|
16.67
|
6
|
South West
|
3
|
16.67
|
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