Nigeria’s N300bn Sovereign Sukuk Attracts N2.2tr Over Subscriptions
By Patience Ikpeme
The Federal Government of Nigeria’s (FGN) recent Series VII Sovereign Sukuk, which offered N300 billion, has achieved an exceptional subscription level, attracting over N2.205 trillion.
This amounts to a subscription rate exceeding 735 percent, as announced by the Debt Management Office (DMO).
A statement from the DMO described this outcome as clear evidence of the substantial investor interest in the ethical instrument. The Sukuk was introduced by the DMO in 2017 as an inventive strategy to broaden the nation’s investor base and offer opportunities for all Nigerians to engage in capital market activities.
An analysis of the subscriptions revealed a diverse range of participants, including retail investors, non-interest banks and financial institutions, traditional banks, pension fund administrators, asset/fund managers, and other entities.
The DMO confirmed that, consistent with previous series, the funds generated from this issuance will be allocated by the FGN for the construction of new roads, the rehabilitation of existing ones, and the building of bridges across Nigeria’s six geo-political zones and the Federal Capital Territory.
The decision to raise funds through Sukuk to finance infrastructure projects aligns with President Bola Ahmed Tinubu’s “Renewed Hope Agenda,” where infrastructure development is a central tenet.
The DMO maintains its commitment to offering secure and liquid investment products to the public while supporting the FGN’s development plans.
