December 13, (THEWILL) – The Federal Government of Nigeria has issued six Sovereign Sukuk bonds valued at N1.1 trillion ($657.6 million) to finance 124 federal road projects covering over 5,820 kilometers across the country’s six geopolitical zones.
The Sukuk initiative, introduced in 2015 as part of the Nigerian Capital Market Master Plan (2015–2025), has been pivotal in advancing the Islamic Capital Market segment within Nigeria’s financial landscape.
Speaking at the ongoing 2nd International Islamic Capital Market (ICM) Conference in Karachi, Pakistan, on Thursday, the Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, lauded the steady growth of Sovereign Sukuk since its first issuance in 2017.
Agama noted that the bonds have consistently recorded oversubscriptions, reaching as high as 441%.
Agama highlighted that Sukuk bonds have been instrumental in funding critical infrastructure such as roads, schools, and housing projects.
He also noted that sub-national and corporate Sukuk issuances are gaining momentum, citing successful examples from Osun and Lagos states, Family Homes Ltd., and TAJ Bank Plc.
“These issuances underscore the versatility of Sukuk as a financing tool, enabling projects ranging from school infrastructure to housing development and even Tier-1 capital for banks—a first in Nigeria,” Agama said.
The ICM segment in Nigeria continues to expand rapidly, driven by government-backed initiatives, a large Muslim population, and increasing investor awareness.
As of November 2024, the country boasts 14 registered Halal mutual funds with a combined net asset value exceeding N105 billion.
“The NGX Lotus Islamic Index tracks 11 Shariah-compliant equities, while Nigeria’s first Islamic Real Estate Investment Trust (REIT) – ChapelHill N-REIT – demonstrates the potential of real estate investments within the ICM,” Agama added.
He also highlighted the role of fintech innovations in driving market growth, noting that the SEC registered Nigeria’s first Robo-advisory firm in 2022, focusing exclusively on Shariah-compliant investments.
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