53 road projects would be funded by the FG using N150 billion in Sukuk bonds.

The allocation of the N150 billion obtained from the present Sukuk bond offering by the Federal Government would be utilized for the financing of 53 road projects throughout the nation.

It is anticipated that the Federal Government's total raised amount through Sukuk is expected to reach N1 trillion in the near future.

The disclosure of the information regarding the 53 highways, which collectively span over 3,000km, was made by Ms Patience Oniha, the Director General of the Debt Management Office (DMO), during an investors' event held in Abuja.

The individual provided an explanation regarding the utilization of toll earnings for the explicit objective of repaying Sukuk.

Sukuk refers to a type of bond that operates on the principles of Islamic finance, wherein it is structured as a non-interest bearing instrument and is backed by tangible assets.

Oniha underscored the commitment of the Federal Government to responsible borrowing practices, which is demonstrated by the utilization of project-focused Sukuk. This approach has resulted in the successful implementation of significant infrastructure projects, particularly in the areas of road and bridge construction.

According to the source, the government's positive outlook on the Sukuk's over subscription is rooted in the Federal Government's substantial investments in infrastructure development, resulting in a cumulative amount of N742 billion raised.

Oniha noted that the substantial investment serves as a compelling illustration of the considerable interest and fervor exhibited by investors in Sukuk.

Infrastructure has a key role in facilitating and promoting economic development. Sukuk represents a viable approach for enhancing infrastructure. The utilization of Sukuk is endorsed by the government and stakeholders, who express their intention to sustain its issuance on an annual basis. It is anticipated that potential investors will allocate their investments towards the Sukuk.

The allocated money will be utilized for the purpose of financing the rehabilitation of road projects and bridges that have been identified by the implementing agencies of the Federal Government.