Nigeria’s foremost entrepreneur and Africa’s richest man, Aliko Dangote, has encouraged all Nigerians to invest in the N100 billion Federal Government of Nigeria Sukuk offer saying that it is a paradigm shift in government’s effort at seeking alternative funding for critical infrastructure.
“I want to urge Nigerians to invest in the offer as it is high yielding with 16.47 percent. It is tax free and will be beneficial to all who invest, it will enhance infrastructural growth.
“I encourage each and every Nigerian, including myself, to participate. We as a company will participate.”
Dangote, who spoke in Lagos when the Director-General of the Debt Management Office (DMO), Ms. Patience Oniha, paid him a courtesy visit, said the offer has the full faith and credit of the Federal Government.
He said that though the Dangote Group is doing a lot with the government, but that it will invest in the financial instrument as a way to promote infrastructural development.
“I must commend the Debt Management Office for having this creativity with this N100 billion Sukuk initiative. It is a right move in the right direction as government seeks for fresh capital to fund infrastructure in the country.
“I know we are doing a lot already with government but that will not stop us from investing in this instrument because without infrastructure no economy can grow. That is why I think it is a good investment.”
Speaking earlier, the Director General of DMO, Ms. Patience Oniha, said that she and her team were visiting to solicit his support for the debut Sovereign Sukuk offer and that the funds will be dedicated solely to road infrastructure.
Oniha explained that the DMO and the Federal Ministry of Power, Works and Housing have identified 25 major road projects across the six geo-political zones which the proceeds from the issuance of the Sukuk will be used to develop.
She said that the Sukuk fund will be applied to critical sections of the 25 road projects to accelerate their completion.
The Federal Government is offering N100 billion in the first sovereign Sukuk offer with a tenor of seven years, rental income will be paid twice yearly and the principal will be repaid in full at the end of the tenor to investors. [myad]
