Nigeria Raises N1.09trn from Sovereign Sukuk for Infrastructure Development

The Debt Management Office (DMO) has announced that the Nigerian Government has successfully raised a total of N1.09 trillion through the Sovereign Sukuk since its debut in 2017.

The funds have been allocated towards critical infrastructure projects, including roads and bridges, across the country.

Speaking during an “all-parties meeting” for the issuance of the 7th series of the Sovereign Sukuk on Wednesday, the Director-General of DMO, Ms. Patience Oniha, disclosed that the latest series aims to raise approximately N300 billion to finance capital 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,” she said.

The DMO pointed out the accomplishments achieved over the years, noting that with the N1.09 trillion raised, over 4,100 km of roads and nine bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory have either been constructed or rehabilitated.

The projects have brought substantial benefits, including reduced travel time, improved road safety, job creation, and improved market access for remote farmers.

Oniha noted that the Sukuk has been well accepted, citing high subscription rates in past issuances.

“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 explained.

The issuance of the Sovereign Sukuk is supported by financial advisers such as Lotus Financial Services Limited, Buraq Capital Limited, and Stanbic IBTC Capital Limited, among others.