BusinessNews From MDA'S

N100bn Sukuk: FG gets thumbs-up from stakeholders for financial inclusion

240

[dropcap]T[/dropcap]he N100 billion Sukuk, non-interest unveiled by the Debt Management Office (DMO), in a nationwide roadshow is  being roundly praised by Financial investors across the country.

“This is a new product which means new opportunities, new investment. I am confident that it would do well same with other financial instruments such as the FGN Bond, Savings bond and the others the DMO has always put on offer, said Tunde Adama of Citibank, one of the placement agents.

Ms. Patience Oniha, Director General of the DMO alongside officials of the Federal Ministry of Power, Works and Housing told stakeholders in Lagos, Port Harcourt and Abuja that the debut N100 billion is dedicated to building critical road infrastructure in the country.

“This is one of several efforts to raise funds for specific projects and this is backed by the full faith of the Federal Government. This is a rental product to cater for segment of our society that requires such services.”

Oniha at the various stops on the roadshow assured potential investors that the Sukuk is backed by the full faith of the federal government and was one of the avenues at which it intends to raise funds for capital projects.

The debut Sovereign Sukuk is an ethical based investment in which rent is based on the investment bi-annually and the principal sum paid at the end of the seven year tenor.

The president of Federation of Muslim Women in Nigeria, Rivers State Chapter, Hajia Maimuna Bello, described the offer as a bold initiative to cater for a critical segment of the country, but urged the DMO to deepen its awareness drive.

The Assistant Director, Planning and Development, of the Federal Ministry of Power, Works and Housing, Mr. Danlele Yila, listed 25 road projects spread across the six geo-political zones of the country which the N100 billion Sukuk capital will be used.

Some of the projects include the Loko Oweto Bridge, dualization of a section of the Abuja-Lokoja road, dulaization of the Suleja-Minna road as well as the Kano-Maiduguri road.

Others include dualization of the Kkano-Katsina road (Ohase 1), rehabilitation of the Onitsha – Enugu Expressway, and the Enugu-Port Harcourt road (section 1-3), dualization of the Ibadan-Ilorin road (section 2).

In Abuja, a former executive director of the NNPC, Ibrahim Waziri, who welcomed the development expressed the hope that the raised funds will be deployed to the listed projects, stressing that as an ethical financial instrument, investors are optimistic of timely rental returns.

Benefits of investing in the Sukuk, according the DMO include; safety, regular income which are tax free and liquidity as they will be listed and traded on The Nigerian Stock Exchange and the FMDQ OTC Securities Exchange Plc. The product is also useful as collateral to access loans from banks.

The debut Sovereign Sukuk is for N100 billion with a tenor of Seven (7) years, and has been certified as ethically compliant by the Financial Regulation Advisory Council of Experts of the Central Bank of Nigeria.

It will be listed and traded on The Nigerian Stock Exchange and the FMDQ OTC Securities Exchange Plc, with offer for subscription slated for September 14

Leave a comment

Related Articles

Nigeria’s FX reserves hit $35.05 bln, highest under Pres. Tinubu

Nigeria’s external reserves continue to soar, as the foreign exchange reserve hit...

Agriculture minister predicts significant drop in food prices within 180 days

Sen. Abubakar Kyari, Minister of Agriculture and Food Security, declared on Wednesday...

NELFUND adds 12 new state-owned institutions to student loan scheme

The Nigerian Education Loan Fund (NELFUND) announced on Wednesday that it has...

UBA MD, Alawuba, appointed Chairman, CIBN Body of Banks’ CEOs

Oliver Alawuba, the Group Managing Director/Chief Executive Officer of United Bank for...

Nigeria seeks $172bn investment boost in key sectors

Nigeria Backbone Infrastructure Limited, a multinational company, has announced plans to invest...

Torrential rains: States, LGs put on high alert as FG predicts more flooding

As the rainy season reaches its peak, the federal government has cautioned...

Tinubu to release N2trn to revamp Nigerian economy

President Bola Tinubu has promised to revamp the Nigerian economy by injecting...

27 years after, Court of Appeal, Abuja, gets five-storey complex 

PpWithin the next 14 months, the Abuja Division of the Court of...

FG grants withholding tax exemptions to SMEs, farmers, manufacturers

Mr. Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy...

Nigeria’s foreign investment inflows grow by 210% in Q1 2024

Foreign investment inflows to Nigeria grew to $3.38 billion in the first...

CBN gets 7 days ultimatum to account for missing N100bn dirty notes, public funds

SERAP said the allegations are documented in the latest annual report recently...

PEBEC Reforms: NPA Emerges Most Committed Federal Government Agency

The Nigerian Ports Authority (NPA) has emerged as the “Most Committed Agency”...

Nigeria’s external reserves surge to $34bln, first since March

Nigeria’s external reserve hit a new milestone in June, rising to $34.07...

Regulation of crypto, digital assets now under full control, says SEC DG

The Securities and Exchange Commission (SEC)  says it has complete oversight and...

FG investigates alleged NIMC data breach

The Federal Government has launched an investigation into the alleged data breach...

NPA generated N501bln revenue in 2023 – Bello-Koko

The implementation of continuous performance improvement measures has resulted in the Nigerian...

Pres. Tinubu’s policies driving maritime sector transformation, stellar revenue, says NPA MD Bello-Koko

The Managing Director/CEO of the Nigerian Ports Authority (NPA), Mohammed Bello Koko,...

Glory days ahead for the naira – CBN Gov. Cardoso

Dr. Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN),...

Dangote Sugar Refinery registers N209bln multi-instrument issuance programme

In a bid to uphold the standard of its corporate objectives, Dangote...

International Drug Day 2024: North, South-West, South-South Red Zones for Drug Abuse – NDLEA

By Shine Alagba Mrs. Ibinabo Archie-Abia, the Assistant Commander General of Narcotics...