The Federal Government said it would use the net proceeds of its ongoing N150 billion Sukuk issuance to fund some 53 road projects across the country.

Director General, Debt Management Office Ms. Patience Oniha disclosed this at an investors’ forum on Thursday in Abuja, saying the 53 roads cover more than 3,000km.

She said the tolls collected from the roads will be used to repay the Sukuk. Sukuk is a non-interest, asset-backed bond that is based on the principles of Islamic finance.

Oniha said the federal government remains committed to value-driven borrowing through project-focused Sukuk, which has contributed to visible road and bridge projects.

She expressed optimism that the N150 billion Sukuk would be oversubscribed, noting that the extra funds that may be realised will be used for available projects.

She said, “The government and people involved believe in the use of Sukuk and plan to continue offering it every year. The hope is that ethical investors will invest in the Sukuk.”

She invited ethical investors to take advantage of the opportunities present in sukuk to participate in subscribing to the offer. She encouraged widespread participation, highlighting that Sukuk VI’s proceeds would fund projects across the country’s six geopolitical zones.

The DMO boss noted that banks are interested in sukuk because of “its tax-exempt status and the liquidity it affords them”.