FG to Raise ₦300 Billion Through Sukuk for Infrastructure Development – DMO

The Federal Government, through the Debt Management Office (DMO), has announced plans to raise ₦300 billion via the issuance of the Series VII Sovereign Sukuk to fund critical infrastructure projects across the country.

Patience Oniha, Director-General of the DMO, made the disclosure in Lagos during an all-parties meeting ahead of the offer launch.

She stated that the funds will be channeled into capital projects that align with the government’s infrastructure development agenda, particularly in transportation and public service delivery.

The Sukuk, a non-interest Islamic bond structured to comply with Sharia principles, will contribute to the construction and rehabilitation of roads and bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory.

“This ₦300 billion issuance continues our strategic approach to sustainable infrastructure financing,” Oniha said. “It will support the execution of major capital projects, reduce travel time, boost road safety, create jobs, and enhance access to markets and essential public services.”

Since the debut Sovereign Sukuk in 2017, Nigeria has raised a cumulative total of ₦1.092 trillion through six issuances. These funds have enabled the completion of over 4,100 kilometres of roads and nine major bridges nationwide, according to data from the DMO.

Oniha emphasized that beyond infrastructure development, the Sukuk initiative also promotes financial inclusion and contributes to deepening Nigeria’s domestic capital market.

As a project-tied instrument, the Sukuk framework ensures transparency and accountability in the allocation and utilization of proceeds.

“The success of the past issuances, both in terms of subscription and impact, underscores the appetite for ethical investments and the relevance of Sukuk in broadening investor participation in government securities,” she added.

The inaugural Sovereign Sukuk, issued in September 2017, had an offer size of ₦100 billion and was oversubscribed, receiving ₦105.9 billion in bids.

The consistent performance of subsequent issuances has positioned Sukuk as a viable alternative funding source for Nigeria’s infrastructure gap.

With increasing fiscal pressure and the need to fund non-recurrent expenditure, the Federal Government continues to explore diversified funding channels.

The Sukuk model, with its asset-backed structure and infrastructure focus, offers a stable platform for long-term capital mobilisation.

The Series VII Sovereign Sukuk is expected to be offered to a broad spectrum of investors, including pension funds, asset managers, retail investors, and Islamic finance institutions.

Details on the offer tenor, pricing, and subscription window will be released in the coming days.

The DMO reiterated its commitment to prudent debt management while ensuring that funds raised through instruments like the Sukuk directly contribute to economic growth and social development.