The Federal Government on Thursday released
the proceeds of the N100 billion Sukuk bond for 25 road projects across the country.
The Minister of Finance, Mrs. Kemi Adeosun,
handed over the N100 billion proceeds cheque to the Minister of Power, Works
and Housing, Mr. Babatunde Raji Fashola, in Abuja.
The federal government had issued the
sovereign debut Sukuk of N100 billion in September, which was successfully
completed last week.
The Sukuk bond has a tenor of seven years.
Adeosun said the offer was oversubscribed to
the tune of N105.87 billion.
She also said the milestone was a sign of
confidence in the Nigerian economy and the administration of President
Muhammadu Buhari.
The minister added that the Sukuk proceeds
would unlock the potentials of Nigeria.
She said: “This is the first Sukuk bond
issuance for Nigeria. It is about financial inclusion and deepening of our
financial markets. The proceeds will be used to further support government
capital spending for 2017 – the construction and rehabilitation of 25 key
economic roads across the six geo-political zones of the country.”
“The roads will ease commuting, spur economic activities
across the country and further close our infrastructural gap.”
“Each of the geo-political zones of the
country is expected to receive the sum of N16.67 billion for road projects in
their respective zones.
The North Central and South- South Zones
accounted for five each of the 25 key economic road projects, while the North
East, North West and South East have four road projects each.
“Three projects are to receive funding from
the Sovereign Sukuk proceeds in the South West Zone.”
Earlier, Fashola commended the Finance
Minister, the Director-General of Debt Management Office, Ms. Patience Oniha
and the financial advisers for the bond issuance for their painstaking efforts
aimed at realising the milestone.
He assured the ministry’s contractors that the
federal government was committed to the funding of its infrastructural projects
across the country.
Source: thenationonlineng.net
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