The Debt Management Office (DMO) has announced the opening of a new ₦300 billion Sovereign Sukuk offer for subscription, aimed at financing critical infrastructure projects across Nigeria. This marks the seventh issuance of the Islamic bond since its introduction in 2017, underscoring the government’s commitment to alternative financing for national development.
Speaking at an all-parties meeting in Lagos, Patience Oniha, Director General of the DMO, highlighted that the Federal Government has successfully raised a total of ₦1.09 trillion through previous Sukuk issuances, funding the construction and rehabilitation of over 4,100 km of roads and nine bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory.
Sustained Growth of Sukuk Financing
Oniha recalled that the first Sovereign Sukuk, issued in September 2017, was a ₦100 billion offer with a seven-year tenor, receiving an oversubscription of ₦105.878 billion. Encouraged by this success, the government has continued leveraging Sukuk to enhance infrastructure, with each issuance witnessing strong investor confidence.
“The projects financed through Sukuk have led to significant benefits, including reduced travel time, improved road safety, job creation, and enhanced economic activities. They have also increased access to markets for rural farmers, expanded public services such as education and healthcare, and stimulated economic growth,” Oniha stated.
She emphasized that the project-tied nature of Sukuk ensures transparency and accountability, making it a preferred financing instrument. “Beyond infrastructure development, Sukuk promotes financial inclusion and contributes to the deepening of Nigeria’s domestic financial market,” she added.
Investor Confidence and Financial Partners
Oniha noted that investor interest in Sukuk has remained high due to its structured income returns, which are paid semi-annually. This dual benefit of social impact and financial returns has contributed to its broad acceptance among institutional and retail investors.
The financial advisers involved in the latest Sukuk issuance include:
- Lotus Financial Services Limited
- Buraq Capital Limited
- Stanbic IBTC Capital Limited
- Greenwich Merchant Bank Limited
- Vetiva Capital Management Limited
These institutions play a critical role in structuring the bond, managing the offering process, and facilitating investor participation.
With the ₦300 billion Sukuk offer, the Federal Government aims to further accelerate infrastructure projects, ensuring that key road networks and bridges are upgraded to boost trade, commerce, and national development.
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