The amount paid on rentals for Sukuk bonds has risen from N8.17bn in the first quarter of 2022 to N33.13bn by the second quarter.
This was a 305.51 per cent increase, according to an analysis of the Federal Government’s domestic debt service report for each quarter by the Debt Management Office.
According to Investopedia, Sukuk is a sharia-compliant bond-like instrument used in Islamic finance.
When an investor purchases Sukuk bonds, the Federal Government gives them a certificate of ownership.
The money is invested in assets across the country, with the investor having a partial ownership.
The Federal Government also makes a contract-binding promise to buy back the bond at a specific future date, and the investors receive respective rental income on their investments.
Speaking with our correspondent on the Sukuk in an earlier report, the DMO Director of Portfolio Management, Mr Oladele Afolabi, said although it was a non-interest loan, the government was expected to pay rents on the roads to the Sukuk investors during the tenure of the loan.
