The Debt Management Office (DMO) has announced that the recently issued Series VII Sovereign Sukuk, valued at ₦300 billion, received an overwhelming subscription of ₦2.205 trillion. The disclosure was made in a statement issued on Wednesday in Abuja.
According to the DMO, the offer was oversubscribed by 735%, underlining the significant investor appetite for the ethical financial instrument first introduced in 2017.
“The Sovereign Sukuk was introduced as an innovative strategy to expand the nation’s investor-base and provide opportunities for all Nigerians to participate in the capital market.
“An analysis of the subscriptions showed that subscribers cut across various segments of the public: retail, non-interest banks and financial institutions, banks, pension fund administrators and asset managers,” it said.
The DMO confirmed that, like earlier series, proceeds from this issuance will be deployed to the construction and rehabilitation of roads and bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory.
“The raising of funds through Sukuk to finance infrastructure projects aligns with Mr President’s Renewed Hope Agenda of which infrastructure development is a key pillar,” it said.
Reaffirming its commitment to support national development, the DMO stated that it remains focused on offering safe, liquid investment opportunities to the public.
The DMO had previously held an investor meeting on May 12 in Abuja to discuss the ₦300 billion Series VII Sukuk.
Director-General of the DMO, Patience Oniha, highlighted the success of Sukuk since its introduction in 2017, noting its appeal among non-interest investors.
According to Oniha, “the acceptance of the Sukuk is an attestation of one of the major roles of the DMO to develop the domestic capital market, while also raising funds for the Federal Government.”
She added that the federal government has raised a total of ₦1.09 trillion through Sovereign Sukuk issuances to date.
She recalled that the first Sukuk, issued in September 2017, attracted a subscription of ₦105.878 billion for a ₦100 billion offer with a seven-year tenor.
“Following the modest success of the first Sukuk and the achievement recorded from September 2017 to December 2023, when the last Sukuk was issued, the DMO has raised a total of ₦1.09 trillion.
“With this amount, more than 4,100 km of roads and nine bridges across the six geo-political zones in Nigeria and the Federal Capital Territory (FCT) have either been constructed or rehabilitated,” she said.
Oniha noted that these projects have led to reduced travel times, improved road safety, job creation, and broader economic benefits such as access to markets, healthcare, and education.
“In addition to those benefits, other reasons for the sustained issuance are the fact that the Sukuk is project-tied, promotes financial inclusion and contributes to the development of the domestic financial market,” she said.
She emphasized that investors are not only contributing to national development but also enjoy biannual income returns on their investments.
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