The amount paid on rentals for Sukuk bonds was N8.17bn in the first quarter of 2023.

This was the same amount paid in Q1, 2022, according to an analysis of the Federal Government’s domestic debt service report for each quarter by the Debt Management Office.

According to Investopedia, Sukuk is a sharia-compliant bond-like instrument used in Islamic finance.

When an investor purchases Sukuk bonds, the Federal Government gives them a certificate of ownership.

The money is invested in assets across the country, with the investor having a partial ownership.

The Federal Government also makes a contract-binding promise to buy back the bond at a specific future date, and the investors receive respective rental income on their investments.

The Debt Management Office recently announced on its website that it won three awards at the EMEA Finance Achievement Awards 2022.

One of the awards was the Best Local Currency Bond in EMEA for the Federal Government of Nigeria N250bn SUKUK.

The PUNCH earlier reported that the Federal Government spent N612.56bn raised through Sovereign Sukuk between 2017 and 2021 for the construction and rehabilitation of 77 road projects and 23 bridges.

This was disclosed by the former Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed, at the symbolic cheque presentation ceremony of the 2022 Sovereign Sukuk Issue proceeds of N130bn to the Ministry of Works and Housing and the Federal Capital Territory Administration.

According to the ex-minister, while 71 road projects and four bridges were under the purview of the Ministry of Works and Housing, six road projects and 19 bridges were handled by the FCTA.

She said, “As at date, this administration has invested the sum of N612.56bn raised through sovereign sukuk between 2017 and 2021 for the construction and rehabilitation of key economic road projects in the six geo-political zones and the Federal Capital Territory.

“In real terms, the amount has been used to construct and rehabilitate sections of 71 road projects covering 2,808.06 kilometers and four bridges by the FMWH and sections of six road projects covering 99 kilometers and 19 bridges by the FCTA.”

She disclosed that from the N130bn raised from the sukuk issued in 2022, the Ministry of Works and Housing got N110bn while FCTA got N20bn for road and bridge projects.

The finance minister said, “The FMWH and FCTA will be sharing the 2022 Sukuk Issue Proceeds of N130bn, which was successfully issued by the Debt Management Office on behalf of the Federal Government of Nigeria on December 02, 2022 as follows: Federal Ministry of Works and Housing – N110,000,000,000.00 and Federal Capital Territory Administration – N20,000,000,000.00.

“The 2022 Sovereign Sukuk of N130bn will be released as part of the Capital Expenditure in the 2022 Appropriation Act, which has been extended by the National Assembly to March 31, 2023.”

She also noted that as of November 2022, N1.88tn had been released as capital expenditure, representing about 40 per cent performance when compared to the total capital budget of N4.7tn.



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