The Federal Government has successfully raised a total of N1.09 trillion through the Sovereign Sukuk initiative since 2017 to fund critical infrastructure projects, according to the Debt Management Office (DMO).
Speaking at a stakeholders’ meeting in Lagos on Wednesday, the Director-General of the DMO, Patience Oniha, highlighted that the latest Sukuk issuance aims to generate an additional N300 billion to finance key capital projects.
Oniha noted that the gathering served as a platform to assess the progress made in utilizing Sukuk as an alternative financing tool for government projects.
“We recall that the first Sukuk was issued in September 2017. After extensive marketing, the offer, which was for N100 billion with a tenor of seven years, received a total subscription of N105.878 billion.
“Following the modest success of the first Sukuk and the achievement recorded from Sept. 2017 to Dec. 2023 when the last Sukuk was issued, the DMO has raised a total of N1.09 trillion.
“With this amount, over 4,100 km of roads and nine bridges across the six geopolitical zones in Nigeria and the Federal Capital Territory have either been constructed or rehabilitated,” she stated.
She further explained that these infrastructure projects have delivered significant benefits, including improved road networks, enhanced safety, reduced travel time, and job creation.
Additionally, she emphasized that the investments have facilitated better access to markets for rural farmers, expanded public services such as education and healthcare, and contributed to overall economic growth.
“In addition to those benefits, other reasons for the sustained issuance are the fact that the Sukuk is project-tied, promotes financial inclusion, and contributes to the development of the domestic financial market,” she added.
According to Oniha, the strong subscription levels seen in previous Sukuk offerings reflect its acceptance among investors, who not only contribute to infrastructure development but also receive returns in the form of semi-annual income payments.
Financial advisers 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. These firms play a key role in structuring and managing the Sukuk issuance process, ensuring investor participation, and guiding the Federal Government through the funding exercise.
