The House of Representatives has decided to investigate road projects funded by Sukuk bonds, which have amounted to about N1.24 trillion over the past seven years. The decision was made during a plenary session on Wednesday after lawmakers adopted a motion of urgent public importance. The motion was presented by Jonathan Gbefwi, a representative from Nasarawa State.
The Federal Government, through the Debt Management Office (DMO), has raised over N1.1 trillion since 2017 by issuing six Sovereign Sukuk bonds. These funds were intended to finance 124 federal road projects covering approximately 5,820 kilometers across Nigeria’s six geopolitical zones. Recent figures from the Securities and Exchange Commission, as of December 2024, estimate this amount at around $657.6 million, based on current exchange rates.
A breakdown of the Sukuk bond allocations over the years includes N100 billion each in 2017 and 2018, N162.56 billion in 2020, N250 billion in 2021, N130 billion in 2022, and N350 billion in 2023. Reports also suggest that an additional N150 billion was issued in October 2023, bringing the total to approximately N1.24 trillion by the end of 2024. However, official confirmation from the DMO is still pending for late 2024 issuances.
While presenting his motion, Gbefwi noted that despite these substantial investments, Nigeria’s road infrastructure remains in poor condition. He referenced a January 2024 report by S&P Global Ratings, which stated that over 70 percent of the country’s 200,000-kilometer road network is still unpaved.
