DMO announces N150 billion fund 53 road projects

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FG's debt service-to-revenue ratio hits 183% in Q1 2023
FG's debt service-to-revenue ratio hits 183% in Q1 2023

Ms. Patience Oniha, the Director General of the Debt Management Office (DMO), revealed that the Nigerian federal government is set to channel the proceeds from the ongoing N150 billion Sukuk issuance towards the funding of 53 critical road projects spanning over 3,000 kilometers across the nation.

Oniha made this disclosure during an investors’ forum held in Abuja.

DMO chief

During her address, Oniha clarified that the revenue generated from toll collections on these roads would be earmarked specifically for the repayment of the Sukuk bonds.

She underscored the government’s commitment to responsible borrowing practices by adopting project-focused Sukuk initiatives, resulting in the successful execution of significant road and bridge infrastructure projects.

Oniha expressed confidence in the oversubscription of the Sukuk bonds, citing the federal government’s substantial investments in infrastructure development, which have generated a total of N742 billion.

She emphasized that this substantial investment demonstrates the keen interest and enthusiasm exhibited by investors in Sukuk as a financing instrument.

Highlighting the importance of infrastructure in driving economic growth, Oniha remarked, “Infrastructure is an enabler of economic development.

Sukuk is one of the strategies for improving infrastructure.”

She further stated that the government intends to continue offering Sukuk bonds annually, with the expectation that ethical investors will continue to support these initiatives.

The funds raised from the Sukuk issuance will be allocated to finance the rehabilitation of road projects and bridges identified by federal government implementing agencies.