Nigeria has commenced the sale of a 100-billion-naira ($226.6 million) domestic sukuk to fund the construction and rehabilitation of key road projects, the Debt Management Office (DMO) said in a tweet.

The 10-year Islamic bond, structured as a lease (forward Ijarah), will yield a 15.64% rental rate per annum.

The bond subscription is backed by the government, with the offer lapsing by November 29, the DMO said in a statement.

In an earlier tweet, DMO Director-General Patience Oniha said that the country has been dependent on borrowing for a very long time because the revenue base is low.

“It is now threatening debt sustainability,” she stated, calling for urgent actions to moderate the level of new borrowing and strengthen the revenue base.

(Editing by Seban Scaria seban.scaria@lseg.com )