March 26, (THEWILL) – The Debt Management Office has announced that the Federal Government has raised a total of N1.09 trillion through the issuance of Sovereign Sukuk since 2017 to fund infrastructure projects across the country.
The Director-General of the DMO, Patience Oniha, made this disclosure on Wednesday in Lagos during an all-parties meeting for the issuance of the seventh series of the Sovereign Sukuk.
Oniha noted that the proceeds from Sukuk, an ethical financing instrument designed to attract a broader range of investors, have been instrumental in the construction and rehabilitation of 4,100 kilometres of roads and nine bridges across Nigeria’s six geopolitical zones.
“We recall that the first Sukuk was issued in September 2017. After extensive marketing, the offer, which was for N100 billion with a tenor of seven years, received a total subscription of N105.878 billion.
“Following the success of the first issuance and the achievements recorded from September 2017 to December 2023 when the last Sukuk was issued, the DMO has now raised a total of N1.09 trillion. With this amount, over 4,100 km of roads and nine bridges across the six geopolitical zones and the Federal Capital Territory have either been constructed or rehabilitated,” she said.
The DMO boss highlighted the broader impact of these projects, including reduced travel time, improved road safety, job creation, and increased access to markets for farmers in remote areas.
She added that the projects have also enhanced access to education and healthcare services while boosting overall economic development.
“In addition to these benefits, other reasons for the continued issuance of Sukuk include its project-tied nature, its role in promoting financial inclusion, and its contribution to the development of the domestic financial market,” she added.
Oniha further stated that investors in Sukuk not only contribute to national infrastructure development but also receive periodic returns, with income paid every six months.
Financial advisers present at the meeting included representatives from Lotus Financial Services Limited, Buraq Capital Limited, Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited, and Vetiva Capital Management Limited.
Meanwhile, the DMO has successfully raised N271.2 billion in the Federal Government’s bond auction held on March 24, 2025.
The auction featured two bond offerings: a five-year bond with a 19.30% interest rate (April 2029) and a nine-year bond with a 19.89% interest rate (May 2033).
The government had initially aimed to raise N200 billion from the five-year bond and N100 billion from the nine-year bond.
However, investor interest exceeded expectations. The five-year bond attracted a total subscription of N59.069 billion from 35 bids, though only three bids were successful.
The nine-year bond saw significantly higher demand, drawing N471.241 billion in subscriptions from 215 bids, with 95 bids being successful.
The DMO ultimately allotted N266.452 billion to successful bidders, reflecting strong investor confidence in long-term government securities.
The debt office stated that the marginal rates for the bonds stood at 19.00% for the five-year bond and 19.99% for the nine-year bond, while the original coupon rates of 19.30% for the April 2029 bond and 19.89% for the May 2033 bond would be maintained.
Additionally, the DMO allotted N91.3 billion in non-competitive allotments for the five-year bond and N61.15 billion for the nine-year.
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