The Debt Management Office (DMO) has said the Sukuk bond is the best product for funding infrastructure in Nigeria as well as expanding financial services.
The Director-General of DMO, Patience Oniha, stated this yesterday in Abuja. She said Sukuk bonds have supported road repairs and construction while adding to financial inclusion.
Sukuk is an Islamic liquidity management instrument used by many governments and corporations to finance big projects.
The Sukuk bond began in September 2017, and since then, the agency has issued three Sovereign Sukuk which were offered in 2017, 2018 and 2020.
Oniha also referred to the recent N100 billion Ijarah Sukuk bonds the DMO offered. The product was offered at 15.64 per cent per year and will be due in 2032.
On the impact of the Islamic bond, Oniha said the Sukuk bond is significant in the sense that it provides the opportunity to raise that quantum of funds just for roads and bridges.
“The Sukuk has become a product that sells itself, but we will be happy to have a lot more people invest in it.
“We have several other products that both local and foreign investors can invest in, but the Sukuk has an added advantage in that it is financing infrastructure, driving retail investors and promoting financial inclusion.
“We are developing the financial market and also giving Nigerians more investment opportunities,” she said.
She added that the Sukuk is a product that Nigerians are demanding.
“Even the contractors are interested because they want to work, and once they are assured of payment they go to the site and begin to work,” she said.