DMO offers N300 billion 7-year Ijarah Sukuk at 19.75% to fund road infrastructure in Nigeria 

According to a public notice released on the DMO’s website on Monday, the Sukuk bond—structured as a Forward Ijarah (Lease) Sukuk—has a rental rate of 19.75% per annum and is due for maturity in May 2032.

The offer opens on Monday, May 12, 2025, and will close on Tuesday, May 20, 2025, with the settlement date scheduled for Friday, May 23, 2025.

The issuance is being carried out by FGN Roads Sukuk Company 1 Plc on behalf of the Federal Government of Nigeria, and aligns with the government’s commitment to deploy alternative financing to bridge Nigeria’s infrastructure deficit.

Key Features of the Offer: 

The funds raised from the Sukuk will be exclusively utilized for the construction and rehabilitation of key road projects and bridges across Nigeria’s six geopolitical zones. The initiative is expected to accelerate economic growth and improve connectivity between rural and urban centers.

The instrument enjoys a robust legal and regulatory status:

This is the eighth Sukuk issuance by the Federal Government since 2017. The DMO has successfully raised over N1 trillion from previous Sukuk offerings, which have financed the development and rehabilitation of hundreds of kilometers of roads and bridges across the country. The Sukuk model also promotes ethical investing and aligns with non-interest finance principles.

By offering a rental yield that is competitive with market rates, the government hopes to attract both retail and institutional investors, including pension funds, insurance firms, fund managers, and faith-based investors.