The Federal Government, through the Debt Management Office (DMO), has launched a N300 billion Sovereign Sukuk aimed at financing critical infrastructure projects across the country.
The offer, which opened on Monday, May 12, will run until May 20, with a settlement date fixed for May 23. It is a seven-year Ijarah (lease) Sukuk with a rental rate of 19.75 percent per annum, payable twice a year.
Director-General of the DMO, Patience Oniha, unveiled the Series VII Sukuk issuance at an investor engagement session in Abuja, noting that the instrument is part of the government’s broader strategy to deepen the domestic capital market and promote financial inclusion.
The Sukuk, priced at N1,000 per unit, has a minimum subscription threshold of N10,000 and subsequent investments in multiples of N1,000, making it accessible to both retail and institutional investors.
“This issuance qualifies as a security under the Trustee Investment Act and is recognised as a government security under the Company Income Tax Act and Personal Income Tax Act. This means it is tax-exempt for pension funds and other eligible investors,” Oniha said.
The instrument, she added, will be listed on both the Nigerian Exchange Limited (NGX) and the FMDQ Securities Exchange, enhancing liquidity and providing an exit window for investors.
Highlighting the government’s efforts to stabilise the public debt profile, Oniha said Nigeria’s debt remains sustainable and well-managed.
She emphasized that ongoing tax reforms will boost revenue generation and reduce the country’s debt-to-revenue ratio.
“When revenues rise, the pressure on borrowing reduces. This ultimately improves debt sustainability and supports economic growth,” she said.
Greenwich Merchant Bank, Vetiva Capital Management, Stanbic IBTC Capital, and Buraq Capital are the issuing houses for the Sukuk. Primary receiving banks include Access Bank, Zenith Bank, GTBank, First Bank, UBA, Standard Chartered, Lotus Bank, Rand Merchant Bank, and others.
The DMO reiterated that the Sukuk is part of its mandate to provide alternative funding sources for infrastructure development, especially roads and bridges, while offering safe and ethical investment instruments to the public.
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