Reps probe N1.2trn sukuk projects over alleged diversion

The House of Representatives has mandated its Committee on works to conduct a forensic probe into the allocation, expenditure, and outcomes of the N1.242 trillion Sukuk funds raised from 2017 to 2024, identifying instances of diversion, inflation, or contractor noncompliance.

The Green Chamber also mandated the Ministry of Works to provide the Committee on Works with detailed real-time records of all Sukuk-funded projects, including financial disbursements, project statuses, and contractor performance as at date and to be updated every quarter.

This is sequel to a motion of urgent importance sponsored by Gaza Gbefwi, member representing Keffi/Karu/Kokona Federal Constituency during the plenary on Wednesday.

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The House noted that since 2017, the Federal Government through the Debt Management Office (DMO), had raised over N1.1 trillion through six Sovereign Sukuk issuances to finance 124 federal road projects, spanning 5,820 kilometres across the nation’s six geopolitical zones with the most recent data from the SEC in December 2024 confirming this amount (approximately $657.6 million USD at current exchange rates).

The Lower Chamber said the Sukuk financing breakdown includes N100 billion (2017), N100 billion (2018), N162.557 billion (2020), N250 billion (2021), N130 billion (2022), and N350 billion (2023), with indications from posts on various reports suggesting an additional N150 billion was issued in October 2023, pushing the cumulative total to approximately N1.242 trillion by the end of 2024, pending official DMO confirmation for late 2024 issuances.

The Lower Chamber further observed that despite this significant investment, Nigeria’s road infrastructure remains in a deplorable state, with over 70% of the country’s 200,000-kilometer road network still unpaved, as noted by S&P Global Ratings in January 2024.

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Lawmakers expressed concerns that without robust accountability mechanisms, the Sukuk programme risks becoming a conduit for mismanagement or corruption.

The House of Representatives also mandated its Committee on Works to submit a comprehensive report to the House within 6 weeks, detailing findings, issues, and proposed remedial measures to the issues surrounding the Sukuk financing in Nigeria.

The Green Chamber also mandated the Clerk, House of Representatives to publish the resolution in the Journal of the National Assembly and the Gazette of the Federal Government of Nigeria in compliance with Sections 88 and 89 of the 1999 Constitution as amended.