Ms Patience Oniha. Director-General, DMO
FG pays N8.17bn for rentals on Sukuk Bond Q1, 2023 – DMO
Federal Government has paid up the rentals for Sukuk bonds to the tune of N8.17bn in the first quarter of 2023, according to the Debt Management Office (DMO) in its domestic debt service report for each quarter released, weekend.
DMO also disclosed that the amount paid for the first quarter of the year represents the same amount paid in Q1, 2022.
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.
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.
