The Debt Management Office (DMO) of Nigeria has amassed N1.09 trillion through Sovereign Sukuk since 2017 to bolster infrastructure development. This was revealed by DMO Director-General Patience Oniha during an all-parties meeting in Lagos on Wednesday, focused on launching the seventh Sukuk series. For this series, the DMO aims to raise N300 billion to fund capital projects.
Oniha highlighted the program’s progress, noting that the first Sukuk, issued in September 2017, sought N100 billion over seven years and attracted subscriptions of N105.878 billion. From then until the latest issuance in December 2023, the DMO has raised N1.09 trillion. These funds have enabled the construction or rehabilitation of over 4,100 kilometers of roads and nine bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory.
The projects have yielded significant advantages, such as shorter travel times, enhanced road safety, and job opportunities. They have also improved market access for rural farmers, increased availability of public services like education and healthcare, and driven broader economic growth.
Oniha emphasized additional benefits of the Sukuk: it is tied to specific projects, fosters financial inclusion, and strengthens Nigeria’s domestic financial market. Past issuances have seen strong investor uptake, reflecting their popularity. Investors gain both the satisfaction of supporting national infrastructure and semi-annual income returns.
The meeting included financial advisers such as Lotus Financial Services Limited, Buraq Capital Limited, Stanbic IBTC Capital Limited, Greenwich Merchant Bank Limited, and Vetiva Capital Management Limited. These firms are pivotal in advising on Sukuk structure, overseeing the issuance process, and engaging investors, as reported by the News Agency of Nigeria (NAN).
