Federal government has raised N250 billion ($608.4 million) in the domestic market by way of sovereign Sukuk to finance road projects, Debt Management Office (DMO) said on Friday.

DMO said demand for the Islamic bond was N865 billion from banks, fund managers and retail investors.

The debt office issued a maiden N100 billion Sukuk four years ago to support road projects and deepen the local debt market. It has raised a total of N362.58 billion through the Islamic bond market.

President Muhammadu Buhari has made upgrading transport networks and investing in outdated power grids the pillar of his administration, with a view to boosting agriculture and other non-oil industries to cut dependence on dwindling crude revenues. But funding has been a major constraint.

Nigeria has been borrowing from both the local and international debt markets and debt service is rising.

($1 = 410.93 naira)

Reuters