The federal government has explained that proceeds of the N250 billion sovereign Sukuk issued last December by the Debt Management Office (DMO) would be released as part of the 2021 capital expenditure.

The SUKUK, which is a form of Public Private Partnership (PPP), was among the funding options adopted by the Federal Government under President Muhammadu Buhari to fund the construction of critical roads in Nigeria.According to a statement by the Director of Press and Public Relations of the Ministry, Mrs Boade Akinola, at the symbolic presentation ceremony of the N250 billion Federal Government 2021 SUKUK cheque to the three beneficiary Ministries, the Minister of Works and Housing, Mr Babatunde Fashola, gave an account on how his ministry spent the previous SUKUK funds given to the ministry.

Fashola went further to explain that SUKUK financing has enhanced completion of some priority road and bridge projects across the country which includes:  the completion of 296 KM Sokoto-Tambuwal-Jega-Yawuri in Sokoto and Kebbi States, completion of 142 KM Section II (Shuwarin – Azare) of Kano-Maiduguri road, completion of 106 KM Section III (Azare- Potiskum) of the Kano-Maiduguri road  and the completion of 1.2 kilometer/360m length Ikom Bridge.

The Minister also explained that the impact of debt and borrowing on the economic lives of the people was significant; pointing out that proper usage of the debt on infrastructure in Nigeria had helped  in galvanizing the economy.