The Debt Management Office (DMO) has opened subscriptions for N300 billion Sukuk Bonds aimed at financing road projects in Nigeria.
As revealed in a public notice on the DMO website, the sukuk, issued on behalf of the Federal Government of Nigeria, forms part of the government’s broader infrastructure financing strategy.
The bonds have a seven-year tenor, a rental rate of 19.75% per annum, and are due to mature in May 2032.
The subscription period opens on May 12, 2025, and closes on May 20, 2025, with the settlement date set for May 23, 2025.
The minimum subscription is N10,000, in multiples of N1,000 per unit, and subsequent purchases are also available in multiples of N1,000, allowing a wide range of investors to participate and promoting financial inclusion.
During an investor meeting on the “FGN N300 Billion Series VII Sovereign Sukuk Issuance,” Patience Oniha, director-general of the DMO, reassured investors about the stability of Nigeria’s debt structure. She stated:
“There’s more transparency now. FX supply has improved, and the rates have become more stable. Some of the measures were difficult at first, but the benefits are beginning to show.
“Over 60 percent of our external debt comes from multilaterals and bilaterals, which offer more favorable terms than commercial debt. This diversification reduces our exposure to market shocks and provides stability.”
DMO listed Greenwich Merchant Bank Limited, Vetiva Capital Management Limited, and Stanbic IBTC Capital Limited as issuing houses for the bond and advised interested investors to contact them.
The N300 billion, seven-year Ijarah Sukuk bond is part of the federal government’s strategy to fund critical roads and enhance infrastructure development across Nigeria’s six geopolitical zones.
Funds raised from the Sukuk will be used exclusively for the rehabilitation of key road projects and bridges, with the invested funds backed by the full credit of the Federal Government of Nigeria.
