DMO: Outer Marina road rehabilitation financed with Sukuk

April 8, 2021 10:14 am

The Debt Management Office (DMO) says the Outer Marina road rehabilitation is currently being funded with Sukuk.

A Sukuk is a sharia-compliant bond-like instruments used in Islamic finance. It involves a direct asset ownership interest, while bonds are indirect interest-bearing debt obligations.

The federal government had announced in July 2020 that 44 federal roads will be fixed with Sukuk funds raised in the bond market.

In the same month, Babatunde Fashola, minister of works and housing, received N162.557 billion Sukuk bond to facilitate the execution of major road projects across the six geo-political zones in Nigeria.

The breakdown of the Sukuk expenditure include: eight roads for north-central (N26.5 billion), eight roads for north-east (N30.5 billion), seven roads for north-west (N26.5 billion), five roads for south-east (N26 billion), six roads for south-west (N27.05 billion) and 10 roads for south-south (N26 billion).

The federal government further said N4 billion Sukuk funding was allocated to the Outer Marina road rehabilitation.

On Saturday, Fashola said the ongoing rehabilitation of the road was recording speed due to Sukuk funding.

In a tweet on Wednesday, DMO said: “DMO’s SUKUK funding is currently rehabilitating the Outer Marina Road which is a major road connecting Lagos Island to Victoria Island, Falomo and Ikoyi.

“While the Outer Marina Road is a major artery on its own, It will also be instrumental to easing the traffic in Lagos during the repair of Falomo Bridge.

“Thanks to the SUKUK, we are able to rebuild Nigeria one infrastructure at a time”.

DMO floated its first Sukuk fund for road infrastructure in 2017 with N100 billion, while the second was in 2018 with another N100 billion.