New Telegraph

Sukuk: FG raises N669.12bn from capital market

Bond rehabilitates 44 major roads
We have bridged massive project de cits –Minister

The Federal Government of Nigeria, through the Debt Management Office, (DMO) raised N669.12 billion from the capital market through its 3rd Sukuk bond offering.The proceeds were used in construction and rehabilitation of as many as 44 major roads across the country. Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, stated this yesterday at the Chartered Institute of Stockbrokers (CIS) workshop with the theme: “Leveraging the Financial Markets to Achieve Double Digits Economic Growth for Nigeria”, which held in Abuja.

Ahmed said: “Also worthy of note is the offer for subscription of the Federal Government of Nigeria Savings Bond (FGNSB) by DMO and executed by stockbrokers. “In addition, the Federal Government of Nigeria accessed the International Capital Market (ICM) with Eurobond issuance to finance capital budget deficit.

“As our various budgetary allocations and policy pronouncements will attest to, this administration has demonstrated unprecedented commitment towards bridging the country’s massive infrastructure deficit. “Just a few months ago, government approved the establishment of the Infrastructure Company, which is envisaged to become a world-class infrastructure development vehicle for Nigeria.

“The company will serve as the platform for seamless public-private partnership in infrastructural financing in the country, effectively interfacing with institutions such as the Central Bank of Nigeria, the Nigeria Sovereign Investment Authority, pension funds and other financiers, home and abroad.” On his part, the Minister of Trade and Investment, Mr. Niyi Adebayo, said: “The implementation of the Africa Continental Free Trade Agreement (AfCFTA) would enhance Africa’s capacity to unlock growth and create jobs by building our industrial capacity, enlarging our productivity and become competitive globally.

“Nigeria has the largest economy and population in Africa with more than $500 billion in GDP and a population of 200 million. “This market size allows manufacturers to increase capacity and expand into other African countries. This will enable investors benefit not only from the Nigerian market but from other countries on the continent as well. To put this in context, Nigeria contributes an estimated 76 per cent of total trading volume in the ECOWAS region. “This is made possible because of the ECOWAS treaty which provides for the free movement of people and goods throughout 15 West African countries.

The AfCFTA grants access to 54 countries with a population of 1.27 billion and a market worth a combined $3.4 trillion.” He noted that the Federal Government of Nigeria through the Ministry of Industry, Trade and Investment recognised the importance of attracting and retaining patient investment in our economy. He added that the ministry has continually engaged relevant MDAs to implement policies that will help to achieve this goal.

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