Caption: Ms. Oniha striking the closing gong during the listing of a Sukuk bond on the NGX Exchange in 2018.

Director-General of the Debt Management Office (DMO), Ms. Patience Oniha, says the agency successfully raised N615.557bn through Sukuk for the rehabilitation and construction of new roads across the country in the four years between September 2017 and December last year.

A Sukuk is an Islamic financial certificate confirming that the project for which the funds are meant comply with Islamic religious law, commonly known as Sharia.

In her presentation titled: “Nigeria Public Debt – Some Considerations,” at the Capital Market Correspondents Association of Nigeria (CAMCAN) 2022 conference in Lagos, Oniha said of the amount, a total of N365.557bn had used to fund the construction of 1,881km of roads and six bridges.

Specifically, she noted that “the last Sukuk issued in December 2021 targets 71 road projects,” such as the reconstruction of Bida-Lambata road in Niger State, rehabilitation of Lagos-Ota-Abeokuta road in Lagos and Ogun states, and the Enugu-Port Harcourt road section III Enugu-Lokpanta, in Enugu State.

Others are the rehabilitation and reconstruction of Enugu-Port Harcourt dual carriageway section II Umuahia-Aba in Abia State and rehabilitation of Kano-Katsina road Phase I, Kano State, among others.

Over the years, Sukuk has become a means by which corporations or governments raise capital for ethical investments made in accordance with Shariah.

The DMO DG also said that a total of N25.69bn was raised through sovereign Green bonds between December 2017 and June 2019, and the funds deployed to seven selected projects across various sectors of the economy including renewable energy, agriculture, water, transport and afforestation.

Speaking on purpose for borrowing, Oniha said that governments borrow to finance budget deficits, and specific projects, or refinance maturing debt obligations.