FG Floats Fresh N300bn Sukuk at 19.75%, Repays 2017 N100bn Sukuk

The Islamic debt instrument will have a tenor of seven years and will mature in May 2032, according to the Debt Management Office (DMO), which is in charge of the sale.

Proceeds from the exercise will be used mainly to finance road projects across the country to meet the ethical and faith considerations of some segments of the investing public.

The interest will be paid every six months and is tax-free, providing a good route for wealth accumulation and investment compounding.

Speaking on Monday during an investor meeting in Abuja, the Director General of the DMO, Ms Patience Oniha, emphasised that the recent credit rating upgrade of Nigeria by Fitch Ratings reflects the progress in economic and debt management reforms.

“Being upgraded by Fitch means we are doing something right. Growth and development is a journey—it doesn’t happen all at once.

“But with the right fiscal and monetary policies in place, we are making tangible progress,” she told investors present at the gathering, stressing that the upgrade directly affects investment decisions, business performance, and market pricing.

She used the occasion to announce the repayment of the N100 billion Sukuk sold in 2017 by the federal government.

“All those who subscribed to the Sukuk in 2017 have now received full repayment of their investments, in addition to the interest they were paid upfront,” Ms Oniha declared.

Business Post reports that the 2027 Sukuk was used to fund road projects across the six geo-political zones of Nigeria, including the Lagos/Abeokuta Expressway, which has yet to be completed.

For the new N300 billion Sukuk, the minimum investment amount is N10,000. It is fully backed by the full faith of the Nigerian government and can be purchased through a stockbroker.

Subscription for the debt instrument commenced on Monday, May 12, 2025, and will end on Tuesday, May 20, 2025.