Onome Amuge
Patience Oniha, the director-general of the DMO
Nigeria’s Debt Management Office (DMO) has announced a landmark achievement in its ethical financing strategy, with total subscriptions for its Sovereign Sukuk bonds reaching N2.205 trillion ($1.47 billion) since the instrument’s debut in 2017. This figure represents an oversubscription rate of 735 per cent, underscoring robust investor appetite for the Sharia-compliant financial instrument.
The DMO, in a circular issued on Wednesday, May 28, 2025, described the success as clear evidence of the market’s embrace of the Sukuk. The instrument was initially introduced in 2017 as an innovative strategy to broaden Nigeria’s investor base and provide diverse opportunities for capital market participation.
The most recent issuance, a N300 billion ($200 million) 7-year Ijarah Sukuk bond, was designed to fund critical road and bridge infrastructure across Nigeria’s six geopolitical zones.
Analysis of the subscriptions revealed broad-based participation from various segments of the public, including retail investors, non-interest banks and financial institutions, traditional banks, pension fund administrators, asset/fund managers, and other entities.
“Like the previous series, funds realised from the Issuance will be used by FGN to construct new roads and rehabilitate existing ones as well as build bridges in the six (6) geopolitical zones of the country and the Federal Capital Territory (FCT),” the DMO statement affirmed.
During an all-parties meeting for the seventh series of the Sovereign Sukuk in March, Patience Oniha, the director-general of the DMO, articulated the objective of raising approximately N300 billion for capital projects.
Reflecting on the programme’s evolution, Oniha recalled the inaugural Sukuk issuance in September 2017, which sought N100 billion with a seven-year tenor and received a total subscription of N105.878 billion.
“Following the modest success of the first Sukuk and the achievement recorded from September 2017 to December 2023, the DMO has raised a total of N1.09 trillion,” she noted.
Through these issuances, over 4,100 kilometres of roads and nine bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory have either been constructed or rehabilitated. The DMO underscored the transformative impact of these infrastructure projects, citing benefits such as reduced travel time, enhanced road safety, job creation, and improved market access for remote farmers.
Oniha also emphasised the dual benefits for investors including the satisfaction of contributing to national infrastructure development coupled with semi-annual income returns.
The success of the Sovereign Sukuk issuances is supported by a consortium of financial advisers, including Lotus Financial Services Limited, Buraq Capital Limited, Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited, and Vetiva Capital Management Limited. These firms play crucial role in advising on the Sukuk’s structure, managing the offering process, and facilitating investor participation.
