The House of Representatives has resolved to investigate Sukuk-backed road projects in Nigeria, valued at approximately N1.24 trillion, following a motion raised on Wednesday by Nasarawa lawmaker, Mr. Jonathan Gbefwi.
The resolution was adopted in plenary after a motion of urgent public importance, raising concerns about the accountability and effectiveness of the road financing initiative.
The Nigerian government, through the Debt Management Office, has since 2017 raised over N1.1 trillion through six Sovereign Sukuk issuances aimed at funding 124 federal road projects across the country’s six geopolitical zones. According to the most recent data from the Security and Exchange Commission, as of December 2024, this amount is equivalent to approximately $657.6 million, based on current exchange rates.
The breakdown of the Sukuk initiative includes N100 billion in 2017, N100 billion in 2018, N162.56 billion in 2020, N250 billion in 2021, N130 billion in 2022, and N350 billion in 2023. Additionally, reports suggest that another N150 billion was issued in October 2023, bringing the cumulative total to N1.24 trillion by the end of 2024, pending official confirmation.
Despite the significant funds raised, Gbefwi highlighted that Nigeria’s road infrastructure remains largely underdeveloped, with over 70 percent of the country’s 200,000km road network still unpaved, according to S&P Global Ratings. Gbefwi expressed concern that without proper accountability mechanisms, the Sukuk program could become a vehicle for mismanagement or corruption.
In response, the House overwhelmingly supported the motion during a voice vote conducted by Deputy Speaker, Benjamin Kalu. The House subsequently mandated its Committee on Works to carry out a forensic probe into the allocation, expenditure, and outcomes of the N1.24 trillion raised through Sukuk from 2017 to 2024. The Committee will focus on identifying instances of mismanagement, inflation, or contractor noncompliance.
Additionally, the Ministry of Works has been ordered to provide the Committee on Works with detailed real-time records of all Sukuk-funded projects, including financial disbursements, project statuses, and contractor performance. These records are to be updated quarterly.
The Committee on Works is expected to submit a comprehensive report to the House within six weeks, detailing its findings, issues, and proposed remedial measures concerning the Sukuk financing initiative.
The move signals the House’s growing concern over transparency and proper utilization of funds in Nigeria’s road infrastructure projects.
