The Debt Management Office (DMO) on Wednesday announced that the Federal Government has successfully recorded a total of N2.205 trillion subscriptions through the Sovereign Sukuk since its debut in 2017, representing an oversubscription of 735per cent.
DMO had announced the issuance of a N300 billion 7-year Ijarah Sukuk bond to fund critical road and bridge infrastructure across Nigeria’s six geopolitical zones.
DMO in a notice posted on its official website said, “It is clear evidence of investor-appetite for the ethical instrument introduced by DMO in 2017 as an innovative strategy to expand the nation’s investor-base and provide opportunities for all Nigerians to participate in the activities of the capital market.”
Analysis of the subscriptions showed that the subscribers cut across various segments of the public: retail, non-interest banks and financial institutions, banks, pension fund administrators, assets/fund managers, and others.
“Like the previous series, funds realized from the Issuance will be used by FGN to construct new roads and rehabilitate existing ones as well as build bridges in the six (6) geopolitical zones of the country and the Federal Capital Territory (FCT),” DMO stated.
Speaking during “an all-parties meeting” for the issuance of the seventh series of the Sovereign Sukuk, the Director-General of the DMO, Patience Oniha, revealed that the latest series aims to raise approximately N300 billion to finance capital projects.
Reflecting on the progress achieved, Oniha stated, “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.”
Oniha highlighted the accomplishments achieved over the years, noting, “Following the modest success of the first Sukuk and the achievement recorded from September 2017 to December 2023, the DMO has raised a total of N1.09 trillion.”
With this amount, 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 DMO emphasized the transformative impact of the infrastructure projects funded by the Sukuk. Benefits include reduced travel time, enhanced road safety, job creation, and improved market access for remote farmers.
She noted that investors experience dual benefits: the fulfillment of contributing to infrastructure development and receiving returns in the form of income paid semi-annually.
The issuance of the Sovereign Sukuk is supported by financial advisers such as Lotus Financial Services Limited, Buraq Capital Limited, Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited, and Vetiva Capital Management Limited.
These firms play a critical role by advising on the Sukuk’s structure, managing the offering process, and facilitating investor participation.
Earlier in May, DMO announced the issuance of a N300 billion 7-year Ijarah Sukuk bond to fund critical road and bridge infrastructure across Nigeria’s six geopolitical zones.