Some of the roads listed to be constructed with Sukuk bond proceeds include, dualization of Suleja-Minna road in Niger State Phase II (km 40+000-km101+000) awarded to Salini Nigeria Limited, dualization of Abuja – Abaji – Lokoja road Section I (International Airport link road junction-Sheda Village Junction) in FCT Contract awareded to Dantata & Sawoe Construction Company Nigeria Limited; dualization of Lokoja-Benin road: Obajana Junction-Benin Section I Phase I: Obajana – Okene in Kogi State awarded to CGC Nigeria Limited .
For South East, contract for rehabilitation and reconstruction of Enugu-Port Harcourt dual carriageway Section I: Lokpanta – Umuahia Tower in Abia State was awateded to Setraco Nigeria Limited .
The Minister of finance Mrs. Zainab Ahmed handed over the N100 billion symbolic cheque to the Minister of Power, Works and Housing Mr. Babatunde Fashola at Finance Ministry’s headquarters in Abuja for onward transmission to various contractors engaged by government for the road projects.
Speaking at the occasion, Mrs Ahmed described the high level of oversubscription of Sukuk offer as a mark of investor’s confidence in the economy.
” The high level of subscription and participation by a diverse range of investors demonstrate the high level of investor confidence in the financing product, particularly, because the road Projects funded with the Proceeds of the first Sukuk that was issued in 2017 were evident for all to see”
” The Twenty-Five road projects, which benefited from the debut Sukuk have resulted in improved transportation across the six ( geo-political zones.The Sukuk offer opened following Investor Meetings in Lagos and Abuja by a delegation led by the Director-General of the Debt Management Office, Patience Oniha, and included representatives of the Federal Ministry of Power, Works and Housing and the Transaction Parties for the Sukuk Issuance. The Transaction Parties were: FBNQuest Merchant Bank Limited, Lotus Financial Services Limited, Banwo & Ighodalo”, she said.
In his remarks, Minister of power, works and housing Mr. Babatunde Fashola said Sukuk as instrument for funding infrastructure projects had been effectively utilized by other nations .
” I want to say again that , there is no nation that i know of that has gone into greatness without building infrastructure. The massive construction in Asia, particularly China and the Middle East is a good example. Nigeria is going through something similar but perhaps in very challenging times.
The federal government in December 28, 2018, issued a 7-year N100 billion Sovereign Sukuk as part of the new domestic borrowing in the 2018 budget to finance road projects.