Babatunde Fashola, former minister of Power, Works and Housing has called on for the introduction of a new N10trillion Sukuk bond to tackle Nigeria’s crumbling infrastructural during his ministerial screening on Monday.
“There is some opportunity is to expand instrument like the Sukuk. We should consider something like a 10 trillion infrastructural bond issued in tranches to fund infrastructure and people can invest to address infrastructural challenges,” Fashola said.
A Sukuk is an investment certificate that represents the ownership interest of the holder in an asset or pool of assets. The certificate entitles the holder to receive income from the use of the assets. It is similar to a bond but differs slightly due to the absence of interest.
Fashola’s appeal is borne out of the success of Nigeria’s first N100 billion 7-year 15.74 percent Sukuk offer issued in 2017 which received over N132 billion subscriptions from 2,073 investors according to the Debt Management Office (DMO).
