More funds should be available to improve road networks in Nigeria soon.
The Debts Management Office (DMO) says the Federal Government is processing the release of another funds to contractors working on the road projects.
The DMO said the release was based on the documents recently received from the Federal Ministry of Power, Works and Housing that it was implementing the road projects.
It said in a statement in Lagos that release of the fund was expected to accelerate work on the road projects.
The News Agency of Nigeria (NAN) reports that the road projects are being financed by the proceeds of the N100 billion Sovereign Sukuk Bond, which was over-subscribed by N5.88 billion in September.
NAN reports that the N100 billion seven-year debut Sukuk offer, closed on September 22.
The Federal Government had on October 4 in Abuja released N100 billion to road contractors to facilitate the construction and rehabilitation of 25 priority road projects across the six geo-political zones.
Sukuk Bonds are Islamic financial instruments structured in such a way to generate returns to investors without infringing the Islamic Law that prohibits “riba” (interest taking).
The bondholders are entitled to a share of the revenues generated by the Sukuk assets.