DMO mobilises funds for infrastructure development

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dmoABUJA – The Debt Office (DMO) said had mobilised through bonds in domestic and international markets to enhance infrastructure development in Nigeria.

Director-General the office, Dr Abraham Nwankwo, made this known in an interview with the News Agency Nigeria (NAN) on Sunday in Abuja.

Nwankwo, declined to disclose the amount realized bonds placements, said that DMO raised for projects, including the dualisation Airport Road in Abuja and the Abuja-Kubwa road.

He said that funding development new districts in Abuja, the revitalization and modernization the railways through the procurement of new locomotives also came for proceeds bonds.

“In the foreign fronts, the borrowings we do the external sector are used for various infrastructural projects like building dams for projects,” he added.

According to him, the one billion dollar bond issued in the international market in 2013 was part of effort to support infrastructure development in the country.

Nwankwo said that greater part of the proceeds from the foreign bonds placements were deployed to transmission projects by Transmission Company of Nigeria (TCN), gas-to- pipeline project and bulk purchases.[eap_ad_2]

On “Sukuk” bond, which is the Islamic equivalent of ordinary bonds, he said that DMO, Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN) were collaborating on a framework for introducing in the Nigerian market.

“The whole idea is that there are categories of investors and servers do not want to participate in interest-bearing financial products.

“They prefer forms of investment that do not generate interest, such as leasing, sharing, joint venture and forms of investment arrangement.

“ So, is important that in the Nigerian system, we should introduce such system that are not interest-bearing so that lead to more financial inclusiveness in the system,’’ he explained.

He said that Sukuk bond would open avenue for more people to be involved in the growth and development of the economy.

He said that the idea was to take advantage of that product to make sure that the base for financial investors was broadened by capturing the segment of economic participants that did not want to participate in interest-bearing products. (NAN)[eap_ad_3]