The Federal Government’s latest Sovereign Sukuk issuance has recorded overwhelming investor interest, attracting ₦2.205 trillion in subscriptions for a ₦300 billion offering. The Debt Management Office (DMO) made the announcement in Abuja, stating that the Series VII Sukuk achieved a staggering 735% subscription rate, underscoring growing public confidence in this ethical investment instrument.
Initially introduced in 2017, the Sovereign Sukuk was designed to diversify the country’s investment base and offer opportunities for broader citizen participation in infrastructure financing. This seventh issuance reinforces the success of that objective, with subscribers ranging from individual retail investors to institutional stakeholders including non-interest banks, traditional banks, pension fund managers, and asset management firms.
The DMO highlighted that funds raised from this Sukuk will be directed towards critical infrastructure development projects, including the construction and rehabilitation of roads and bridges across all six geopolitical zones and the Federal Capital Territory (FCT). This funding approach aligns closely with President Bola Tinubu’s Renewed Hope Agenda, where infrastructure is a key driver of national growth.
In a recent investor forum held on May 12 in Abuja, the Director-General of the DMO, Patience Oniha, reflected on the progress since the Sukuk’s inception. She noted that the government has successfully raised ₦1.09 trillion from previous issuances, which has funded the construction or refurbishment of over 4,100 kilometers of roadways and nine major bridges nationwide.
According to Oniha, the popularity of the Sukuk program stems from its transparent, project-based structure. She emphasized that the funds are strictly tied to infrastructure projects, which not only guarantees tangible results but also offers investors the satisfaction of contributing to national development.
“The success of the Sukuk reflects its role in fostering financial inclusion and expanding the domestic capital market,” Oniha said. “Beyond monetary returns, investors also benefit from knowing they are part of critical infrastructure upgrades that improve road safety, reduce travel time, and stimulate economic activity.”
She also pointed out additional socio-economic impacts of the projects funded by Sukuk, such as improved access to public services like education and healthcare, better market connectivity for rural farmers, and the creation of thousands of job opportunities.
Investors in the Sukuk receive biannual income returns, making it both a secure and rewarding option for ethical investment. With each successive offering being oversubscribed, the Sukuk is proving to be a mainstay in the government’s strategy for sustainable infrastructure financing.
