Nigeria’s Debt Management Office (DMO) has announced the commencement of a new Sukuk, or Islamic bond, offering valued at N300 billion, aimed at supporting infrastructure development across the nation.
Since 2017, the Federal Government has successfully raised a cumulative total of N1.09 trillion through the Sovereign Sukuk, Patience Oniha, Director General of the Debt Management Office, disclosed on Wednesday in Lagos, during “an all parties meeting” for the issuance of the seventh series of the Sovereign Sukuk.
She stated that for this series, the goal is to secure approximately N300 billion, which will be allocated to finance capital projects. According to Oniha, the meeting provided an opportunity to assess the progress the DMO has made in utilizing Sukuk as a means of generating funds for the government.
“We recall that the inaugural Sukuk was issued in September 2017. Following extensive promotional efforts, the offering, which sought N100 billion with a seven-year tenor, received total subscriptions amounting to N105.878 billion.
“Building upon the modest success of the initial Sukuk and the achievements recorded from September 2017 to December 2023, when the most recent Sukuk was issued, the DMO has raised a cumulative total of N1.09 trillion.
“With these funds, over 4,100 kilometers of roads and nine bridges spanning the six geopolitical zones of Nigeria and the Federal Capital Territory have been either constructed or rehabilitated,” she noted.
Oniha emphasized that these projects have yielded significant benefits, including reduced travel times, enhanced road safety, and job creation.
She added that the projects have also facilitated improved access to markets for farmers in remote areas, increased access to public services such as education and healthcare, and fostered overall economic development.
“In addition to these advantages, the continued issuance is justified by the project-tied nature of the Sukuk, its promotion of financial inclusion, and its contribution to the development of the domestic financial market,” she stated.
She observed that the Sukuk has been well-received, as evidenced by the subscription levels achieved in previous offerings. She highlighted that investors derive satisfaction from contributing to infrastructure development, while also receiving returns in the form of income paid every six months.
The financial advisors present at the meeting included Lotus Financial Services Limited, Buraq Capital Limited, Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited, and Vetiva Capital Management Limited.
They play a pivotal role in the issuance of Sovereign Sukuk, assisting the Federal Government of Nigeria through the DMO. Their responsibilities encompass advising on the Sukuk’s structure, managing the offering process, and facilitating investor participation.
 has announced the commencement of a new Sukuk, or Islamic bond, offering valued at N300 billion....){kind=link}