Sukuk: DMO engages stakeholders; emphasises infrastructure development

The Debt Management Office (DMO), on Thursday engaged financial market stakeholders on the 6th series of its “Sovereign Sukuk Issuance” programme.

The programme was organised to intimate Nigerians and the stakeholders about the benefit of investing in the Sukuk.

It was reported that on Oct. 3, the DMO announced an offer for subscription of its 6th, 10-year tenor Sovereign Sukuk for N150 billion, at a rental rate of 15.75 per cent.

According to Patience Oniha, Director-General of the DMO, the Sovereign Sukuk was in initiated in 2017 to aid the rehabilitation and construction of critical national infrastructure.

Oniha said that the Federal Government had raised and deployed N752.557 billion, through the Sukuk, for development of critical infrastructure since 2017.

She said that Sukuk helped in infrastructure development and also achieves associated multiplier benefits.

“The DMO, through the issuance of Sukuk, has raised and deployed N752.557 billion to the rehabilitation and construction of N4, 000 kilometres of roads and bridges across the six geopolitical zones and the Federal Capital Territory (FCT).

“Apart from infrastructure development, Sukuk encourages financial inclusion by offering ethical investors an opportunity to invest in government securities.

“It deepens the domestic financial market and also sets a benchmark corporates and subnationals,” she said.

She assured that the Sukuk was backed by the full faith and credit of the Federal Government.