Dangote Vows to Invest in FG’s N100b Sukuk

September 18, 2017
Dangote Sugar

By Modupe Gbadeyanka

Africa’s richest man, Mr Aliko Dangote, has thrown his full weight behind the debut N100 billion Sukuk exercise embarked upon by the Debt Management Office (DMO) on behalf of the Nigerian government.

Mr Dangote, speaking when the Director-General of the debt office, Ms Patience Oniha, paid him a courtesy visit in Lagos, said the exercise was commendable.

“I want to urge Nigerians to invest in the offer as it is high yielding with 16.47 percent. It is tax free and will be beneficial to all who invest, it will enhance infrastructural growth.

“I encourage each and every Nigerian, including myself, to participate. We as a company will participate,” the business mogul said.

He described the exercise as a paradigm shift in government’s effort at seeking alternative funding for critical infrastructure, pointing out that his firm will invest in the financial instrument as a way to promote infrastructural development.

“I must commend the Debt Management Office for having this creativity with this N100 billion Sukuk initiative.

“It is a right move in the right direction as government seeks for fresh capital to fund infrastructure in the country, Mr Dangote said.

He further disclosed, “I know we are doing a lot already with government but that will not stop us from investing in this instrument because without infrastructure no economy can grow. That is why I think it is a good investment.”

In her remarks, the DMO boss, Ms Patience Oniha, said she and her team were visiting to solicit his support for the debut Sovereign Sukuk offer, stressing that the funds will be dedicated solely to road infrastructure.

Ms Oniha explained that the DMO and the Federal Ministry of Power, Works and Housing have identified 25 major road projects across the six geo-political zones which the proceeds from the issuance of the Sukuk will be used to develop.

She further stated that the Sukuk fund will be applied to critical sections of the 25 road projects to accelerate their completion.

The FG is offering N100 billion in the first sovereign Sukuk offer with a tenor of seven years, rental income will be paid twice yearly and the principal will be repaid in full at the end of the tenor to investors.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Leave a Reply

KPMG Fires Executives Over Gupta Scandal
Previous Story

KPMG Fires Executives Over Gupta Scandal

Saraki Says IPOB Ban “Unconstitutional”, Vows to Intervene
Next Story

Saraki Says IPOB Ban “Unconstitutional”, Vows to Intervene

Latest from Economy

Don't Miss