By Kadiri Abdulrahman

The Debt Management Office (DMO) has offered for subscription N250 billion road Sukuk instrument for N1,000 per unit.

A statement in DMO’s website indicates that the instrument was issued by “FGN Roads Sukuk Companies 1 Plc.” on behalf of the Federal Government.

The offer is N1,000 per unit subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.

“It qualifies as securities in which trustees can invest under the Trustee Investment Act.

“It also qualifies as Government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for Tax Exemption for Pension Funds, among other investors,” the DMO explained.

It added that the Sukuk instrument is to be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited.

“Classified as Liquid Asset by the Central Bank of Nigeria, and certified by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria.

“It is backed by the full faith and credit of the Federal Government of Nigeria.”

The DMO explained that proceeds would be used solely for the construction and rehabilitation of key road projects across the six geopolitical zones of the country.

It announced the due date as December 2031, and Rental Rate 12.80 per cent per annum.

Meanwhile, the DMO has announced that Nigeria’s Total Public Debt as at Sept. 30, is N38 trillion (92.62 billion dollars).

The office stated that the data included the Total External and Domestic Debts of the Federal Government of Nigeria, 36 State Governments and the Federal Capital Territory.

It explained that the increase of N2.54 trillion when compared to the corresponding figure of N35.4 trillion at the end of the second quarter of 2021 was accounted for by the 4 billion dollars Eurobonds issued by the Government in September.

“The issuance of the 4 billion dollars Eurobonds has brought significant benefits to the economy by increasing the level of Nigeria’s External Reserves, thereby supporting the Naira Exchange Rate and providing necessary capital to enable the Federal Government finance various projects in the Budget.

“The triple tranche 4 billion dollars Eurobond, issued in September 2021, was for the implementation of the New External Borrowing of 6.18 billion dollars in the 2021 Appropriation Act,” DMO explained. (NAN)

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