Business Hilights
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Sukuk fund: Each zone to get N16.67bn for selected roads repairs

Following the raising of about N100 billion from the recently floated sovereign sukuk, the Federal Government has disclosed that each of the six geopolitical zones will get about N16.67bn to fix 25 major economic roads.

The Finance minister, Mrs. Kemi Adeosun revealed that the sukuk was over-subscribed, as over N105bn was realised, adding that N100bn was pulled out for the purpose of road construction.

Business Hilights recalls that in September, government commenced the sale of the N100bn sovereign sukuk in the local market to fund road infrastructure.

Already, the Debt Management Office had announced that the seven-year Islamic bond, which was structured as a lease, would yield 16.47 per cent rental rate, payable semi-annually.

The ministers of Power, Works and Housing, and Finance, Babtunde Fashola and Kemi Adeosun, as well as the Director-General, DMO, Patience Oniha, met with heads of about 10 construction companies in Abuja on Thursday, where Adeosun presented the N100bn cheque to Fashola for the projects.

Explaining more, Adeosun noted that “This is the first sukuk in Nigeria and it is an important development in our financial market, because it will deepen it. It was over-subscribed; we got N105.87bn and we are giving N100bn to the ministry of works. This money is going to be used for economic roads.”

“The government outlined the number of roads to be rehabilitated in each of the zones to include five each in the North-Central and South-South; four each in the North-East, North-West and South-East; and three in the South-West.

Contractors that will handle many of the jobs across the zones include Arab Contractor Nigeria Limited, CGC Nigeria, CCECC Nigeria Limited, Salini Nigeria Limited, Reynolds Construction Company Nigeria Limited and Setraco Nigeria Limited.

Others are Dantata and Sawoe Construction Company Nigeria Limited, Eksiogullari Nigeria Limited, Mothercat Limited and Gitto Constrizon Generali Limited.