The N300 billion Series VII Sovereign Sukuk by the Federal Government last month has hit a record-high oversubscription of N2.205 trillion, 735% higher than the initial offer, according to the Debt Management Office (DMO).
Since its introduction in 2017, sukuk has been a non-interest, ethical investment vehicle, thoughtfully designed to broaden Nigeria’s investor base and improve the role of the capital market as a whole. The Debt Management Office refers to the record-breaking N2.2 trillion subscription as unwavering proof of growing investor appetite for sukuk, a new financing tool revolutionizing Nigeria’s Islamic finance industry.
Subscriptions poured in thick and fast from a cross-section of subscribers, including retail customers, non-interest banks, traditional banks, pension fund administrators, fund and asset managers, and other financial institutions, testifying to general confidence in this moral investment product.
Proceeds from the sale of this sukuk will be utilized for financing critical infrastructure, which includes the construction of new roads, road rehabilitation, and bridge construction across all six geo-political zones and the Federal Capital Territory (FCT). The DMO reaffirms that this is in line with previous issuances, channeling funds to tangible projects advancing Nigeria’s infrastructural growth and economic development.
This resounding success critically aligns with President Bola Tinubu’s Renewed Hope Agenda, an agenda that positions infrastructure as a key ingredient to national growth and economic resilience. The Debt Management Office reaffirms its commitment to offering safe, liquid, and inclusive investments through sustainable financing vehicles like sukuk towards advancing the agenda of the Federal Government. The Nigerian capital market continues to expand with positive investor confidence as well as the growing popularity of ethical investments like sukuk with this accomplishment.
