Reps Launch Probe into N1.24trn Sukuk Road Projects

Advertisements

The House of Representatives has initiated an investigation into the management of Sukuk-funded road projects, valued at approximately N1.24 trillion, raised between 2017 and 2024.
The decision followed the adoption of a motion of urgent public importance sponsored by Hon. Jonathan Gbefwi, a lawmaker from Nasarawa State.

Since 2017, the Federal Government, through the Debt Management Office (DMO), has raised over N1.1 trillion via six Sovereign Sukuk issuances to finance 124 federal road projects spanning 5,820 kilometres across Nigeria’s six geopolitical zones.

Recent data from the Securities and Exchange Commission (SEC) indicates that the total value of these issuances stands at around $657.6 million as of December 2024.

The breakdown of Sukuk issuances includes N100 billion (2017), N100 billion (2018), N162.56 billion (2020), N250 billion (2021), N130 billion (2022), and N350 billion (2023). Reports suggest an additional N150 billion may have been raised in October 2023, potentially pushing the total to N1.24 trillion by 2024—pending official confirmation from the DMO.

Hon. Gbefwi raised concerns over Nigeria’s deteriorating road infrastructure, citing that over 70% of the country’s 200,000-kilometre road network remains unpaved, as reported by S&P Global Ratings in January 2024.

He warned that without proper oversight, the Sukuk programme could become susceptible to corruption and mismanagement.

Following a voice vote presided over by Deputy Speaker Benjamin Kalu, the House mandated its Committee on Works to conduct a thorough probe into the allocation, expenditure, and outcomes of the Sukuk funds.

The investigation will focus on possible fund diversion, contract inflation, and contractor non-compliance.

Additionally, the House directed the Ministry of Works to submit real-time records of all Sukuk-funded projects, including financial disbursements, project statuses, and contractor performance, with quarterly updates.

The Committee on Works has six weeks to submit a detailed report, including findings and recommendations for corrective measures.

The House also ordered its clerk to publish the resolution in the Journal of the National Assembly and the Federal Government Gazette, in line with Sections 88 and 89 of the 1999 Constitution (as amended).

Earlier, the House had passed several constitution alteration bills, which were referred to the Committee on Constitution Review, chaired by Deputy Speaker Benjamin Kalu.

This follows the passage of 39 similar bills earlier in the week.