The Debt Management Office (DMO) has disclosed that the Federal Government has generated a total of N1.09 trillion through the Sovereign Sukuk initiative since 2017 to enhance infrastructure development.
DMO’s Director-General, Patience Oniha, made this known on Wednesday in Lagos during an all-parties meeting held in preparation for the issuance of the seventh series of the Sovereign Sukuk.
According to Oniha, the new issuance aims to raise approximately N300 billion to fund capital projects across the country.
“This meeting allows us to reflect on the significant progress made in utilizing Sukuk as a viable funding mechanism for the government,” she stated.
Recalling the introduction of Sukuk in 2017, she noted that the maiden issuance of N100 billion, which had a seven-year tenor, received a total subscription of N105.878 billion after extensive marketing efforts.
“Since the initial issuance in September 2017 and up until December 2023, when the last Sukuk was floated, the DMO has successfully raised N1.09 trillion. This funding has facilitated the construction or rehabilitation of over 4,100 kilometers of roads and nine bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory,” she said.
Oniha highlighted the broader impact of these projects, citing reduced travel times, improved road safety, and job creation. Additionally, she pointed out that the initiative has enhanced access to markets for rural farmers, improved public services such as education and healthcare, and contributed to economic growth.
She emphasized that the Sukuk program’s continued success is attributed to its project-tied nature, its role in fostering financial inclusion, and its contribution to developing the domestic financial market.
Investors, she noted, benefit not only from the satisfaction of contributing to national development but also from biannual income returns.
Correspondence reports that financial advisers present at the meeting included Lotus Financial Services Limited, Buraq Capital Limited, Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited, and Vetiva Capital Management Limited. These firms play a vital role in the issuance process by advising on structuring, managing the offering, and facilitating investor participation.
(NAN)