Nigeria pays N8.17bn Sukuk Bond in first quarter of 2023

The amount paid on rentals for Sukuk bonds was N8.17bn in the first quarter of 2023, the same amount paid in Q1, 2022, an analysis of the Federal Government’s domestic debt service report for each quarter by the Debt Management Office has shown.

Sukuk is a sharia-compliant bond-like instrument used in Islamic finance.

When an investor purchases Sukuk bonds, the Federal Government gives them a certificate of ownership.

The money is then invested in assets across the country, with the investor having a partial ownership.

The Federal Government also makes a contract-binding promise to buy back the bond at a specific future date, and the investors receive respective rental income on their investments.

Previously, the Federal Government spent N612.56bn raised through Sovereign Sukuk between 2017 and 2021 for the construction and rehabilitation of 77 road projects and 23 bridges.

Punch/Hauwa Abu