The Federal Government has launched a new N300 billion Sovereign Sukuk aimed at funding critical road infrastructure across the country, as part of efforts to enhance infrastructure development and diversify its funding sources.
The Debt Management Office (DMO) announced that the offer, which opens today and runs until May 20, 2025, is a seven-year Sukuk maturing in 2032. It features an annual rental return of 19.75 per cent and is structured as a non-interest, asset-backed investment compliant with Islamic finance principles.
Priced at N1,000 per unit, the Sukuk has a minimum subscription of N10,000, with subsequent investments in multiples of N1,000. The instrument will pay rental income semi-annually and repay the principal in full at maturity.
The DMO explained that this issuance supports the dual objective of funding national infrastructure while expanding access to ethical investment products for the domestic market. Since its debut in 2017, Nigeria’s Sukuk programme has recorded strong interest, with previous issuances oversubscribed by wide margins.
This latest offer is backed by the full faith and credit of the Federal Government, qualifying it as a trustee-approved investment under the Trustee Investment Act. It also enjoys tax exemptions for pension funds and other eligible investors, and is classified as a liquid asset by the Central Bank of Nigeria.
Upon completion, the Sukuk will be listed on the Nigerian Exchange (NGX) and FMDQ Securities Exchange, enhancing liquidity and enabling investors to trade the security easily.
Olatunde Amolegbe, Managing Director of Arthur Steven Asset Management, described the new Sukuk as a compelling opportunity for investors seeking predictable returns and ethical compliance. “This is a high-yield, government-backed instrument offering nearly 20 per cent return annually. It’s ideal for investors who prefer non-interest investments,” he noted.
Amolegbe added that the Sukuk is particularly attractive due to its liquidity, as it can be converted to cash within two working days through the securities exchanges.
Since the inaugural N100 billion Sukuk in 2017, which was oversubscribed by 5.8 per cent, the government has raised over N1 trillion through subsequent issuances, all tied to specific, trackable infrastructure projects.
DMO Director-General, Patience Oniha, said the consistent oversubscription of Sukuk offers reflects growing market confidence and rising investor interest in non-interest financial instruments. She emphasized that future issuances may target not only road infrastructure but also revenue-generating projects to ensure sustainability.
The DMO sees this Sukuk as part of a broader strategy to deepen the domestic capital market, promote financial inclusion, and deliver on the government’s infrastructure agenda.
