FG to raise N300bn from sovereign Sukuk

Buoyed by the success it achieved with the last six series of Sukuk, the Federal Government has announced that it is set to raise a fresh N300 billion through the upcoming Series VII Sukuk.

The Director-General of the Debt Management Office (DMO), Ms. Patience Oniha, who disclosed this at the All Parties Meeting for the Series VII Sovereign Sukuk in Lagos on Wednesday, also informed that the government raised N1.092 trillion from the last six series of Sukuk.

Sukuk is a Sharia-compliant financial instrument aimed at attracting ethical investors.

Speaking at the meeting, Ms. Oniha said, “Just like the previous Sukuk series, proceeds from Series VII will be allocated to capital projects across the country.”

She said, so far, the proceeds from Sukuk have been utilised to construct or rehabilitate 4,100 kilometers of roads and nine bridges across Nigeria’s six geopolitical zones.

“The first sovereign sukuk was issued in September 2017. After extensive marketing, the offer, which was for N100 billion with a seven-year tenor, received a total subscription of N105.878 billion—an early indication of the positive reception of Sukuk,” she said.

“Following the modest success of the first Sukuk and given its impact, the DMO has raised a total of N1.092 trillion between 2017 and December 2023. With this amount, over 4,100 kilometers of roads and nine bridges across the six geopolitical zones and the Federal Capital Territory have been either constructed or rehabilitated.”

She listed the benefits of these projects to include reduced travel time, improved road safety, job creation, better market access for farmers in remote areas, increased access to education and healthcare services, as well as overall economic growth.

She also noted that Sukuk promotes financial inclusion, is asset-backed, and contributes to the development of Nigeria’s domestic financial market.

The meeting was attended by transaction advisers, technical advisers, legal advisers, issuing houses, and top DMO management.