The Federal Government has Finally Cleared the N3.1trn 2021 Domestic Borrowing ad it’s not being reduces to an amount that can be handled before another year runs out. With the latest N250 billion Sukuk, the Debt Management Office, DMO, has successfully brought to close, the sum of N3.143 trillion domestic borrowing contained in 2021 budget.
All of the domestic borrowings had been realized prior to now say for N250 billion, whose offer was unveiled to both institutional and private investors at an investors’ forum in Abuja, yesterday. Addressing investors and media in Abuja, Director- General of DMO, Ms. Patience Oniha noted that unlike previous Sukuk bond offer that had only Federal Ministry of Works and Housing as sole government’s agency to utilize proceeds for road construction, the N250 billion Sukuk has two other ministries, Federal Capital Territory, FCT and the Ministry of Niger Delta Affairs.
Amongst roads listed for construction by Federal Ministry of Works and Housing, include, Abuja-lokoja road section iv (koton karfi-lokoja); dualisation of obajana junction to benin phase 2: section 1 (obajana junction to okene); construction of Oju/Loko-Oweto bridge to link Loko and Oweto with approach roads; Makurdi – Naka – Adoka – Ankpa Eoad in Benue State; construction of Baro Port to Gulu town in Niger State and reconstruction of Nasarawa -Loko road in Nasawara State section amongst others. The ministry has road projects to construct across the six geo political zones of the country.
For FCT, some of the road projects to be constructed with its share of N37 billion sukuk include, to construct southern parkway from Christian Centre (S8/9) to ring road I (RR I); completion of roads B6, B12 & circle road, Abuja Central Area, rehabilitation and expansion of outer southern expressway from Villa Roundabout to OSEX/Ring Road 1 and (RR1) junction among others. Ministry of Niger Delta Affairs , with N75 billion Sukuk proceeds will carry out dualisation Of East-West oad (Section II-I) Port Harcourt-Ahoada, 47Km; dualisation of East-West road (Section II-II) AhoadaKaiama, 54Km; upgrading of 15km of section III from Port-Harcourt Eleme Junction to Onne Port Junction amongst others roads to be constructed.
Giving background to the Sukuk offer in an interview with journalists, Ms. Oniha gave overview of current and previous Sukuk bond issuance by DMO. “The purpose of today’s event is to achieve two objectives- sensitize the media on issuance of fourth Sukuk as well as to invite investors within and outside Nigeria to tell them about sovereign Sukuk we are about to issue.
By a way of background, the DMO had issued three Sukuk previously- 2107, 2018 and 2020, raising a total of N362.57 billion to finance road projects across the six geo political zones of the country. That has been extremely successful and has both the DMO as the face of government for borrowing and others. The average citizen on the road has been impressed with what the Sukuk has contributed to the economic growth and development.”