The Federal Government of Nigeria has launched a new ₦300 billion Sukuk bond for public subscription, offering a rental return of 19.75% on a 7-year tenor instrument, as per details released by the Debt Management Office (DMO).
This Sharia-compliant financial instrument, maturing in May 2032, was opened to investors on May 12 and will remain available for subscription until May 20, according to the DMO’s official offer document.
The minimum subscription amount has been pegged at ₦10,000, with additional investments required in multiples of ₦1,000 per unit. This structure is designed to enhance accessibility and promote wider participation among Nigerian investors. The DMO highlighted in its documentation that interest in Nigeria’s sovereign Sukuk programme has grown steadily since its inception.
Sovereign Sukuk have become a cornerstone of Nigeria’s infrastructure financing strategy while simultaneously advancing ethical investment principles and encouraging financial inclusion, noted AAG Capital Limited in a market commentary.
Financial analysts emphasized that persistent oversubscription and high demand for the instrument underscore its transparency, credibility, and broad investor appeal. The growing trend of oversubscription in recent years reflects heightened investor confidence in non-interest, government-backed securities.
Commenting on the high level of investor interest and questions regarding potential increases in offer sizes, the Director-General of the DMO stated during an investor call that all Sukuk issuances are strictly aligned with the capital allocation for infrastructure projects within the federal budget. Consequently, future Sukuk offerings will continue to be dictated by budgetary allowances, even amid surging demand.
Since debuting in 2017, Nigeria has raised approximately ₦1.09 trillion through a series of sovereign Sukuk issuances, with proceeds directed toward the financing and rehabilitation of over 4,100 kilometers of roads and nine bridges across the nation’s six geopolitical zones, including the Federal Capital Territory.
AAG Capital further clarified that Sukuk are Islamic finance instruments that confer ownership in tangible assets or infrastructure projects. Structured in accordance with Islamic law—which prohibits interest (riba)—Nigeria’s sovereign Sukuk follows an Ijarah model. Under this lease-based framework, investors such as pension funds, non-interest banks, insurance firms, faith-based institutions, and retail buyers finance infrastructure development (mainly road construction) and receive semi-annual rental returns until maturity, when the principal amount is repaid.
