REPS TO INVESTIGATE N1.24TN SUKUK-FUNDED ROAD PROJECTS

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On Wednesday, the House of Representatives decided to look into road projects supported by Sukuk that had raised over N1.24 trillion over the last seven years (2017–2024).

The House’s determination came after a motion of urgent public concern, supported by Mr. Jonathan Gbefwi, a legislator from Nasarawa, was adopted in plenary.

In order to fund 124 federal road projects totaling 5,820 kilometers across the country’s six geopolitical zones, the Federal Government has, since 2017, raised nearly N1.1 trillion through six Sovereign Sukuk issuances under the Debt Management Office.

According to the Security and currency Commission’s most recent data, as of December 2024, this sum is almost $657.6 million at current currency rates.

N100 billion (2017), N100 billion (2018), N162.56 billion (2020), N250 billion (2021), N130 billion (2022), and N350 billion (2023) make up the Sukuk initiative. Posts on various reports indicate that an additional N150 billion was issued in October 2023, bringing the total to roughly N1.24 trillion by the end of 2024, pending official confirmation from the Debt Management Office for late 2024 issuances.

Despite the substantial expenditure, Gbefwi urged support for the motion by pointing out that, according to S&P Global Ratings in January 2024, “Nigeria’s road infrastructure remains in a deplorable state, with over 70% of the country’s 200,000km road network still unpaved.”

“The House is worried that without robust accountability mechanisms, the Sukuk programme risks becoming a conduit for mismanagement or corruption.”