The Federal Government of Nigeria’s recent issuance of the Series VII Sovereign Sukuk has garnered significant investor interest, achieving an oversubscription rate of 735%. The Debt Management Office (DMO) reported that the N300 billion offering attracted subscriptions totaling over N2.205 trillion.
This seven-year Sukuk, structured as a Forward Ijarah (Lease) instrument with a rental rate of 19.75% per annum, was open for subscription from May 12 to May 20, 2025, with settlement on May 23. The funds raised are earmarked for infrastructure projects, including the construction and rehabilitation of roads and bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory.
The DMO highlighted that the overwhelming response underscores the growing appetite for ethical investment instruments in Nigeria. Subscribers encompassed a diverse range of investors, including retail participants, non-interest banks, pension fund administrators, and asset managers.
Since the introduction of the Sovereign Sukuk in 2017, the Federal Government has raised over N1.09 trillion through this instrument, facilitating the development of more than 4,100 kilometers of roads and nine bridges nationwide.
The DMO reaffirmed its commitment to providing secure and liquid investment opportunities while supporting the Federal Government’s infrastructure development agenda.
