The Issuance of the N150bn Ijarah Sukuk, the sixth by the Federal Government of Nigeria since 2017, will deepen the country’s domestic financial market. Ms. Pat Oniha, the Director-General of the Debt Management Office, DMO, disclosed this in an interactive session at the 2023 Sukuk Investors meeting in Abuja.

According to her, through the Sovereign Sukuk issuance in the last six years, Nigeria has raised and deployed N742.557bn to rehabilitate and construct a 4,000km stretch of road projects and bridges across the six geopolitical regions in the country.

She noted that the 2023 FGN Sovereign Sukuk is a “Forward Al Ijarah” for ten (10) years at a rental of 15.75% and enjoys similar features as other Sukuk.

The DG of DMO also added that the issuance of the Sovereign Sukuk is geared towards deepening the domestic financial market activities in Nigeria, boosting financial inclusion, and providing ethical investors an opportunity to invest in government securities. 

“The issuance of Sukuk by the Federal Government since 2017 is designed to develop our country’s infrastructure and achieve the desired multiplier economic benefits. It also serves as a benchmark for corporates and sub-nationals,” she said. 

Details of the 2023 Sukuk Issuance show that Buraq Capital is the financial adviser, while the issuing houses are Greenwich Merchant Bank, Vetiva, and Stanbic IBTC Capital. The Delegated trustees are Apel Capital and FBN Quest Trustees, while their solicitors are Udo Udoma & Bello Osagie and Felix Akinnisola-Olubodun & Co Chambers.

Some of the road projects that are financed by the FGN Sukuk programme include Abuja-Abaji-Lokoja, Obajana-Okene, Ibadan-Ilorin, Kano-Maiduguri, Enugu-Port Harcourt, Lagos-Otta-Abeokuta and Damaturu-Portiskum roads. 

The 2019 Global Competitive Index revealed that Nigeria ranked 130 out of 141 economies in road infrastructure in the World.  The Sukuk Programme is one of the innovative steps the DMO deployed to address infrastructure financing in Nigeria.

In addition, the 2023 FGN Sukuk is listed on the Nigeria Exchange Limited and the FMDQ Securities Exchange and is backed by the full faith and credit of the Federal Government of Nigeria. The minimum subscription is N10,000 at N1,000/unit and in multiples of N1,000 thereafter.

The N150bn Sukuk is certified by the Financial Regulatory Advisory Council of Experts, (FRACE) of the Central Bank of Nigeria.