Reps to probe N1.1trn Sukuk projects over alleged diversion

The house of representatives has resolved to investigate the N1.1 trillion Sukuk road projects from 2017 to 2024.

The lower legislative chamber passed the resolution during the plenary on Wednesday following the adoption of a motion of urgent public importance sponsored by Gaza Gbefwi, a lawmaker from Nasarawa.

The investigation aims to uncover and identify “instances of diversion, inflation, or contractor non-compliance” in the execution of the road projects.

While moving the motion, Gbefwi said a report by the Debt Management Office (DMO) shows it raised over N1.1 trillion through six sovereign Sukuk issuances to finance 124 federal road projects spanning 5,820 kilometres across the six geopolitical zones.

The lawmaker highlighted the breakdown of Sukuk financing as follows: N100 billion in 2017, N100 billion in 2018, N162.557 billion in 2020, N250 billion in 2021, N130 billion in 2022, and N350 billion in 2023.

He said reports suggest that an additional N150 billion was issued in October 2023, bringing the cumulative total to approximately N1.242 trillion by the end of 2024.

“Despite this significant investment, Nigeria’s road infrastructure remains in a deplorable state, with over 70 percent of the country’s 200,000-kilometer road network still unpaved, as noted by S&P Global Ratings in January 2024,” he said.

“Without robust accountability mechanisms, the Sukuk programme risks becoming a conduit for mismanagement or corruption.”

The motion was adopted when it was subjected to a voice vote by Benjamin Kalu, the deputy speaker, who presided over the plenary.

Consequently, the house mandated the committee on works to conduct a “forensic probe” into the allocation, expenditure, and outcomes of the N1.242 trillion Sukuk fund.

The parliament also directed the federal ministry of works to provide detailed records of all Sukuk-funded projects, including financial disbursements, project statuses, and updated contractors’ performance.