The Federal Government of Nigeria has successfully raised N1.092 trillion through Sukuk bonds, a Sharia-compliant investment instrument designed to attract ethical investors. This funding has been strategically deployed for the construction and rehabilitation of 4,100 kilometers of roads and nine major bridges across Nigeria’s six geopolitical zones.

Nigeria’s Sukuk Bond Success and Infrastructure Development

The Director-General of the Debt Management Office (DMO), Ms. Patience Oniha, disclosed this at the All Parties Meeting for the Series VII Sovereign Sukuk in Lagos. She highlighted that the first Sovereign Sukuk, issued in September 2017, was initially targeted at N100 billion but exceeded expectations with a total subscription of N105.878 billion, signaling strong investor confidence.

Since then, the Federal Government has raised over N1 trillion through six Sukuk series from 2017 to December 2023, significantly boosting Nigeria’s road infrastructure.

Key Benefits of Sukuk-Funded Projects

According to Ms. Oniha, the proceeds from Sukuk have led to:

✔ Reduced travel time across major highways
✔ Enhanced road safety for motorists and commuters
✔ Job creation in the construction and transport sectors
✔ Better market access for farmers in rural communities
✔ Improved access to education and healthcare facilities
✔ Overall economic growth through infrastructure expansion

Additionally, she emphasized that Sukuk bonds promote financial inclusion, are asset-backed, and contribute to the development of Nigeria’s domestic capital market.

FG Set to Raise Fresh N300 Billion from Series VII Sukuk

Building on the success of previous Sukuk issuances, the Federal Government is now set to raise an additional N300 billion through the Series VII Sovereign Sukuk. These funds will be allocated to capital projects nationwide, further strengthening Nigeria’s infrastructure and economic growth.

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• The announcement was made during a high-level meeting attended by Transaction Advisers, Legal Advisers, Technical Advisers, Issuing Houses, and senior DMO officials.
• Nigeria’s Infrastructure Investment and Economic Growth
• With continued investments in critical infrastructure,

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