Mathew Amaechi
The House of Representatives on Wednesday resolved to launch a comprehensive forensic probe into Sukuk-backed road projects totaling approximately N1.24 trillion raised between 2017 and 2024. The motion—deemed of urgent public importance and spearheaded by Nasarawa lawmaker Mr. Jonathan Gbefwi—comes amid growing concerns over Nigeria’s deteriorating road infrastructure.
The Federal Government, through the Debt Management Office, has raised over N1.1 trillion via six separate Sovereign Sukuk issuances. The funds, allocated to finance 124 federal road projects spanning 5,820 kilometres across the nation’s six geopolitical zones, have recently come under intense scrutiny.
Data from the Securities and Exchange Commission as of December 2024 estimates the Sukuk funds at roughly $657.6 million at current exchange rates. A detailed breakdown of the Sukuk initiative reveals the following issuances: N100bn in 2017, N100bn in 2018, N162.56bn in 2020, N250bn in 2021, N130bn in 2022, and N350bn in 2023.
Moreover, reports indicate that an additional N150bn was issued in October 2023, potentially pushing the cumulative total to the N1.24tn mark, pending official confirmation from the Debt Management Office.
Lawmaker Gbefwi emphasized that despite these massive financial injections, Nigeria’s road network remains in a deplorable state. “Over 70 per cent of our 200,000km road network is still unpaved, as confirmed by S&P Global Ratings in January 2024,” he stated.
The lawmaker warned that without robust accountability mechanisms, the Sukuk programme risks becoming a conduit for mismanagement or corruption, undermining the intended developmental impact.
Following an overwhelming voice vote led by Deputy Speaker Benjamin Kalu, the House mandated its Committee on Works to conduct an in-depth probe into the allocation, expenditure, and outcomes of the Sukuk funds. The investigation will specifically target any instances of fund diversion, inflationary practices, or contractor noncompliance.
In a parallel directive, the Ministry of Works has been instructed to furnish the committee with detailed, real-time records of all Sukuk-funded projects. This includes information on financial disbursements, current project statuses, and contractor performance, with updates scheduled to be provided quarterly.
The committee has been given a tight deadline, with a comprehensive report due in six weeks. The report is expected to highlight any irregularities and recommend remedial measures to ensure future accountability and improved project execution.
In line with constitutional requirements, the House Clerk has been directed to publish the resolution in both the Journal of the National Assembly and the Gazette of the Federal Government of Nigeria, in accordance with Sections 88 and 89 of the 1999 Constitution, as amended.
As the nation watches closely, stakeholders and citizens alike are calling for swift and transparent action. The outcome of this probe could set a crucial precedent in the management of public funds, particularly in the vital sector of national infrastructure development.
