Nigeria’s Debt Management Office said the country has raised 250 billion naira ($608.4 million) from the sale of sovereign sukuk in the local market to finance road projects.
The office added that offers for Islamic bonds amounted to 865 billion naira from banks, fund managers and retail investors.
The bureau had issued its first sukuk worth 100 billion naira about four years ago to finance road projects and boost the local debt market. The office collected a total of 362.58 billion naira from the sukuk market.
President Muhammadu Buhari has made developing the transportation network and investing in aging electricity networks a priority for his government with the aim of strengthening the agricultural and other non-oil sectors to reduce dependence on dwindling oil revenues. However, funding was a major constraint. Nigeria is borrowing from domestic and international markets, and facing a rise in debt service.
