The Calabar – Itu road project in Nigeria is set to receive funding from Sukuk bond. Minister of Works Minister of Works and How, Babatunde Fashola disclosed the report and said the funds will be issued later this year.
The road project is part of President Muhammadu Buhari’s commitment to providing quality infrastructure and diversifying the nation’s economy. The project includes dualization of Calabar-Itu-Ikot Ekpene federal road project, linking the state with Cross River state in Nigeria has resumed.
The Minister applauded that the impact of Sukuk bond would be felt on nation building through job creation, growth and employment. Federal Government contractors would be the first beneficiaries, which would in turn trickle down to suppliers of building materials, artisans, miners and steel companies.
Minister of Finance, Mrs Zainab Ahmed, said that there was a significant increase in the level of participation of retail investors from about 4% in 2017 Sukuk issuance to 17.3% in 2018.
“The objective of financial inclusion and deepening of investor base of the Federal Government securities were gradually being achieved,” said Mrs Zainab Ahmed.
Sukuk comes from the word Sakk, which means legal instrument, deed and cheque when translated. It can also mean to strike a deal on paper. The first Sukuk transaction took place in Damascus, Syria in the Great Mosque of Damascus back in the 7th century AD. Ownership of an asset is clearly shown in sakuk. The Shariah law plays a major role in ensuring that the assets that back Sukuk are of good moral standard.