FGN Set to Raise N300 Billion via Series VII Sukuk for Key Infrastructure Projects

 The Federal Government of Nigeria (FGN), through the Debt Management Office (DMO), has launched the Series VII Sovereign Sukuk, a NGN300 billion issuance aimed at funding critical road and bridge projects across the country. The offer, which is now open, will close on Tuesday, May 20, 2025.

This latest Sukuk offering is part of the federal government’s continuing effort to mobilize non-interest financing to boost national infrastructure. The issuance is being carried out on behalf of the FGN Roads Sukuk Company 1 Plc, and forms a key element of Nigeria’s broader economic development strategy.

Infrastructure Financing with Impact

Since the maiden issuance in September 2017, Sovereign Sukuk has become a recurring feature in Nigeria’s infrastructure financing landscape. Proceeds from previous Sukuk tranches have been deployed to fund the construction and rehabilitation of major roads and bridges across all six geopolitical zones, with significant improvements reported in mobility, logistics, and economic activity.

The Series VII Sukuk continues this legacy, with funds earmarked for capital-intensive transport infrastructure projects identified by implementing agencies such as the Federal Ministry of Works.

“This initiative not only supports critical development goals but also enhances financial inclusion and strengthens the domestic capital market,” the DMO stated.

Offer Details at a Glance:

• Issuer: FGN Roads Sukuk Company 1 Plc
• Offer Size: NGN300 Billion
• Tenor: 10 Years
• Rental Rate: To be announced
• Use of Proceeds: Construction and rehabilitation of roads and bridges
• Closing Date: May 20, 2025

Broader Investor Appeal

The Sukuk structure, rooted in Islamic finance principles, offers an ethical investment alternative that appeals to both retail and institutional investors. It is designed to channel capital directly into tangible infrastructure assets, providing transparency and assurance of impact.

The DMO encourages Nigerians from all walks of life to invest, noting that past issuances were oversubscribed—an indication of growing investor confidence and public interest in sustainable, non-interest government securities.

Looking Ahead

As the three-day countdown begins, the Series VII Sovereign Sukuk represents another significant opportunity for investors to support Nigeria’s infrastructure drive while earning competitive returns.

For more information on how to participate, visit www.dmo.gov.ng or contact any authorized issuing house.

About Sovereign Sukuk in Nigeria:
Sovereign Sukuk are Shariah-compliant financial instruments issued by the Federal Government of Nigeria to raise funds for public infrastructure development. They have become increasingly popular among investors seeking ethical and asset-backed investments with visible social impact.

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