Nigeria’s debt market has witnessed an unprecedented show of investor confidence as the Federal Government’s Series VI Sovereign Sukuk offering attracted a staggering N2.205 trillion in subscriptions—an oversubscription rate of 735 per cent, according to report by Debt Management Office (DMO).
Originally targeting N300 billion, the seven-year Ijarah Sukuk was floated to finance critical road and bridge projects across Nigeria’s six geopolitical zones. The record subscription marks a significant milestone in Nigeria’s push to deepen ethical finance and mobilize funds for infrastructure through non-interest instruments.
The DMO noted that interest in the Sukuk came from a broad spectrum of investors, including retail buyers, non-interest banks, traditional banks, pension fund administrators, and asset managers. “It is clear evidence of investor appetite for the ethical instrument,” the agency stated, adding that the Sukuk framework is designed to democratize investment and promote financial inclusion.
Since the introduction of the Sovereign Sukuk in 2017, Nigeria has now raised N2.205 trillion cumulatively from domestic investors. Director-General of the DMO, Patience Oniha, said the latest series underscored the credibility the instrument has earned over time.
“With N1.09 trillion raised between 2017 and 2023 alone, more than 4,100 km of roads and nine bridges have either been constructed or rehabilitated nationwide,” Oniha revealed.
The Sukuk’s appeal lies not just in its financial returns—offering semi-annual income payments—but in its tangible socioeconomic benefits. These include reduced travel time, improved road safety, job creation, and market access for rural farmers.
The funds raised are earmarked solely for physical infrastructure, reinforcing the transparency and ethical underpinnings of the financing tool. The DMO emphasised that key financial advisers—Lotus Financial Services, Buraq Capital, Stanbic IBTC Capital, Greenwich Merchant Bank, and Vetiva Capital—played a pivotal role in structuring and managing the issuance.
