The Federal Government has issued six Sovereign Sukuk bonds totaling N1.1 trillion ($657.6 million), funding 124 road projects spanning over 5,820 kilometers across the nation’s six geopolitical zones.

This initiative not only underscores the country’s commitment to ethical financing but also highlights the Islamic Capital Market (ICM) as a resilient tool for resource mobilisation to drive infrastructure development and financial inclusion.

Speaking at the 2nd International Islamic Capital Market Conference in Karachi, Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), noted that since the inaugural issuance in 2017, the sovereign Sukuk programme had achieved unprecedented success, with subscription rates exceeding 400 per cent.

This achievement has catalysed the growth of Nigeria’s ICM, with subnational entities like Lagos and Osun states and corporates such as TAJ Bank Plc tapping into Sukuk’s potential.

These instruments have financed critical sectors, including education, housing, and tier-1 bank capital. Beyond Sukuk, Nigeria’s ICM offers diversified opportunities, boasting 14 Halal mutual funds with a net asset value of over N105 billion as of November 2024.

The NGX Lotus Islamic Index tracks 11 Shariah compliant equities, while the nation’s first Islamic Real Estate Investment Trust (ChapelHill N-REIT) underscores the versatility of Islamic finance.

Dr. Agama attributed the sector’s growth to strategic policy frameworks, including the Non-Interest Capital Market Master Plan (NICMMP), which targets a 25 per cent share of total market capitalization by 2025.

Key milestones include retail Sukuk participation, the establishment of a NonInterest Pension Fund, and the resolution of double taxation on non-interest transactions.

Yet, challenges persist, including limited public awareness and a paucity of tradable instruments. To address these gaps, the SEC has prioritized capacity-building, particularly in Shariah governance, and is collaborating with stakeholders to develop Shariahcompliant housing finance solutions.

Dr. Agama highlighted Islamic finance’s role in bridging Nigeria’s infrastructure deficit, advancing financial inclusion, and meeting ethical investment demands. As global investors increasingly prioritize sustainability and inclusivity, Nigeria’s ICM stands as a compelling opportunity.

“The table is set for investing,” Dr. Agama declared, inviting foreign capital to align with domestic trends, fostering growth across Nigeria and the broader African continent.

This remarkable journey reaffirms that Islamic finance is not merely an alternative—it is a catalyst for sustainable economic transformation.