FG’s Sukuk Offer Oversubscribed by 735%, Rakes in N2.205 Trillion
The Federal Government of Nigeria’s Series VI Sovereign Sukuk has been oversubscribed by an unprecedented 735%, attracting a record N2.205 trillion in total subscriptions.
This was disclosed in a circular released on Wednesday, May 28, 2025, by the Debt Management Office (DMO), which has been managing the issuance since its inception.
The latest Sukuk issuance, valued at N300 billion, is a 7-year Ijarah (lease-based) Islamic bond specifically aimed at financing critical road and bridge infrastructure projects across Nigeria’s six geopolitical zones.
The massive interest in the bond underlines the growing appetite for ethical and non-interest financial instruments in Nigeria’s capital market, particularly among pension funds, insurance companies, and retail investors.
According to the DMO, the oversubscription reflects strong investor trust in government-backed Sukuk as a secure and transparent investment vehicle, especially as the funds are tied to tangible infrastructure projects with measurable impact.
“The resounding success of the Series VI Sukuk issuance underscores the high level of investor confidence in the Federal Government’s commitment to infrastructure development and fiscal prudence,” the DMO stated.
With this issuance, the Federal Government has now raised a cumulative total of N2.205 trillion from the Sukuk market since the first issuance in 2017.
The funds have been used to finance the construction and rehabilitation of over 5,000 kilometers of roads and bridges nationwide, many of which have already been completed or are nearing completion.
The N300 billion Series VI Sukuk will be deployed to fund dozens of strategic infrastructure projects across all regions, including the rehabilitation of the Lagos-Ibadan Expressway, the Abuja-Kaduna-Zaria-Kano Highway, the Enugu-Port Harcourt Expressway, and several other key routes critical to Nigeria’s economic and social connectivity.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, hailed the success of the issuance, noting that Sukuk has become an integral part of Nigeria’s debt strategy by aligning capital raising with economic development priorities.
The successful issuance also marks a significant milestone in the expansion of non-interest finance in Nigeria.
As Africa’s largest economy with a sizable Muslim population, Nigeria has increasingly embraced Islamic finance instruments to diversify funding sources and broaden financial inclusion.
The Securities and Exchange Commission (SEC) has also played a key role in developing a regulatory framework to facilitate the growth of Sukuk and other Sharia-compliant instruments, ensuring transparency, investor protection, and market stability.
