| Islamic Finance |    8307 VIEWS  |
| Islamic Finance | |
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Thursday, April 12, 2018 / 09:53
AM / DMO
Officials
of the Debt Management Office, Federal Ministry of Power Works and Housing,
Federal Ministry of Finance and Office of the Accountant-General of the
Federation started the inspection of the Roads being financed with the
Sovereign Sukuk issued in 2017.
The
proceeds of the N100 billion Sukuk were designated for the financing of 25 Road
Projects across the six geopolitical zones of the country. From the list of
Road Projects made available to the public when the Sukuk was issued, these
were major roads that will facilitate the movement of people, goods and
services, thereby contributing to economic growth and development.
It
would be recalled that the current administration had prioritised investment in
infrastructure as a major focus in its plans for the growth of the economy and
job creation. The Sukuk represents a promise kept and a step forward in
Nigeria’s drive for the development of infrastructure, which is in line with
the Economic Recovery and Growth Plan (ERGP) launched by the Government in
2017.
The
team visited the Abuja-Abaji-Lokoja Road, the Obajana-Okene Road, the
Suleja-Minna Road and the Kaduna Eastern Bypass Road. During the Inspection,
the Team assessed progress on the work that had been done as well as ongoing
rehabilitation and construction works on the roads. The Team interacted with
the various contractors handling the projects.
The
inspection revealed that significant amount of work had been done and the
contractors expressed their appreciation for the Sukuk which assured them of
prompt payment for work done. The Sukuk has incentivised the contractors to
accelerate work on the selected roads because of the confidence that the
Government had dedicated funds already in place to pay them upon completion of
milestones.
Of
particular significance was the fact that the funds from the Sukuk had made it
possible to construct the Okene Bypass, a new road which would ensure a safer
and more convenient journey for travellers and residents by moving traffic away
from the township and reducing congestion on the roads within the town.
Similarly,
the Kaduna Eastern Bypass, whose construction had been delayed by inadequate
funding, will ease traffic within the Kaduna metropolis, while also improving
the travel experience for persons transiting through Kaduna to other towns.
According
to information made available, the Government delegation will inspect all the
Sukuk-financed Roads to confirm that the Sukuk funds have been utilised as
planned. Analysts believe that this debut Sukuk has breathed new life into old
projects and provided funding for new ones. It is, therefore, a financing
instrument that is very appropriate for the development of infrastructure. 
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