Dipo Olowookere
By Dipo Olowookere
All things being equal, on June 28, 2017, the Federal Government will approach the local market to sell N100 billion debut sovereign Sukuk, Reuters reports.
Proceeds from the exercise, according to the Debt Management Office (DMO) on Tuesday, would be used to fund road projects in the country.
First Bank and Lotus Capital have been saddled with the responsibility of handling the sale. It would be the first time the FG was exploring the Sukuk option of borrowing, which is interest free.
In 2013, Osun State took advantage of this system of borrowing when it issued N10 billion Sukuk.
According to the DMO on Tuesday, the Islamic bonds with a 7-year tenor would be traded for three days via book building on the Nigerian Stock Exchange (NSE) and the FMDQ OTC platform.
In order to carry out some key projects in the country, Nigeria embarked on different borrowings when it slumped into recession last year.
This was caused mainly by a slip in the price of crude oil in the global market as well as drop in oil production in the oil-rich Niger Delta region of the country caused by activities of militants in the area.
The 2017 budget was only signed on Monday by the Acting President, Mr Yemi Osinbajo, after the National Assembly passed the appropriation bill last month.
