If you have driven past Eko Atlantic in the last eighteen months, you might have noticed a prominent billboard indicating that the federal government raised sukuk bonds to construct the road (Ahmadu Bello way).
Key takeaways:
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Sukuk bonds are pretty new in Nigeria, introduced to serve as an alternative funding source for the federal government’s capital projects, particularly roads and bridges.
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Asides from this funding benefit, sukuk bonds are structured to boost financial inclusion as they attract investors who want to keep to the ethos of their religious practices. In addition, issuing these bonds leads to more liquidity and depth in Nigeria’s capital market.
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Sukuk bonds have significantly reduced the cost and time previously experienced in actualising road projects and driven retail participation in the financial market, fuelling the confidence needed to replicate the sukuk success with other capital projects.
About 44 critical road projects, including Ota-Abeokuta, Lagos-Ota, Enugu-Portharcourt,
