Lagos: The Debt Management Office (DMO) has announced that the Federal Government of Nigeria has successfully raised a total of N1.09 trillion through the Sovereign Sukuk since its inception in 2017, aimed at supporting infrastructure development across the nation. The Director-General of the DMO, Patience Oniha, made this disclosure during an all parties meeting held on Wednesday in Lagos, which focused on the issuance of the seventh series of the Sovereign Sukuk.
According to News Agency of Nigeria, Oniha outlined that the current series seeks to raise approximately N300 billion to finance capital projects. The gathering provided a platform to review the progress achieved through the utilization of Sukuk as a funding mechanism for governmental projects. Oniha recalled that the first Sukuk issuance took place in September 2017, initially offering N100 billion with a seven-year tenor, which attracted a total subscription of N105.878 billion.
Over the years, the DMO has successfully raised N1.09 trillion, facilitating 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. These infrastructure projects have led to significant benefits, including reduced travel time, improved road safety, and job creation.
Oniha emphasized that the projects have enhanced access to markets for remote farmers, increased availability of public services such as education and healthcare, and contributed to overall economic development. The sustained issuance of Sukuk is attributed to its project-tied nature, promotion of financial inclusion, and positive impact on the domestic financial market.
The Director-General noted the widespread acceptance of Sukuk, as evidenced by the subscription levels in past issuances. Investors benefit not only from contributing to infrastructure development but also from receiving income returns every six months.
The News Agency of Nigeria further reported 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 advisers play a vital role in the Sovereign Sukuk issuance process, assisting the Federal Government through the DMO by advising on Sukuk structuring, managing the offering process, and facilitating investor participation.