-
The Debt Management Office (DMO) has launched a N300 billion Sovereign Sukuk to fund road infrastructure and address Nigeria’s N18 trillion road deficit.
-
The bond will run for seven years with a 19.75% annual rental return.
-
DMO Director-General, Patience Oniha, stated that Nigeria’s 50% debt-to-GDP ratio is within global benchmarks, emphasizing that debt sustainability depends on revenue growth and GDP expansion.
The Debt Management Office (DMO) has unveiled a N300 billion Sovereign Sukuk, as part of efforts to close Nigeria’s estimated N18 trillion road infrastructure gap and diversify the country’s funding sources.
The seven-year bond, due in 2032, offers a non-interest annual rental return of 19.75%, payable semi-annually, with a minimum investment entry of N10,000.
At the launch on Monday, DMO Director-General, Patience Oniha, emphasized that Nigeria’s public debt remains sustainable, stating, “The debt-to-GDP ratio stands at 50 per cent, which is within acceptable limits set by the IMF, World Bank, and ECOWAS.” She noted that debt sustainability is not just about the amount borrowed, but also about “growing revenues and expanding the GDP.”
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
READ ALSO: Debt Levels Rising Globally, Not Just in Nigeria – DMO
Oniha highlighted the rising investor confidence in Sukuk, which has raised over N1.09 trillion since 2017 and delivered over 4,100km of roads and nine bridges.
She added, “Looking ahead, we recognise the need to upscale issuances to include other standalone projects beyond road infrastructure, but more importantly, we are looking to support projects that are revenue-generating to service the Sukuk.” She also pointed to improvements in Nigeria’s macroeconomic outlook, credit upgrades, and improved FX stability as signs that current reforms are yielding results.
Leave a comment