The Federal Government has reaffirmed its commitment to bridging Nigeria’s infrastructure gap through the issuance of its N300 billion Series VII Sovereign Sukuk, which opened for subscription on Monday, May 13, 2025, and is set to close on May 20, 2025.
At an investors’ meeting held in Abuja and organised by the Debt Management Office (DMO), its Director-General, Ms. Patience Oniha, highlighted the strong interest shown by both conventional and non-interest financial institutions, including insurance companies, in the Sukuk product.
Ms. Oniha explained that the Sukuk is tailored for funding impact-driven, special-purpose infrastructure projects, especially in the road sector, which is vital for economic activity and national development.
“Nigeria’s road network is fundamental to the nation’s economic activities, facilitating the movement of goods and passengers. However, these networks face challenges such as inadequate maintenance, underinvestment, and population pressure,” she said.
There are, however, concerns that the new borrowing will increase the nation’s debt stock. Nigeria’s total debt profile (federal and states) was put at N144. 87trn as at the fourth quarter of 2024. But the DMO DG is optimistic that gradual recovery of the Naira and recent passage of the federal tax bills by the National Assembly with help bolster revenue and sustain economic growth and reduce fiscal deficit.
She added that recent government initiatives, in partnership with the private sector, are aimed at revitalizing and expanding road infrastructure across the country.
Stakeholders at the meeting unanimously agreed on the need for continued investment in new and existing road infrastructure to keep pace with economic and population growth.
The Sovereign Sukuk, structured as a special purpose vehicle, is being managed with BURAQ Capital Limited as the financial adviser. Participating financial institutions include major primary dealer market banks such as First Bank, Access Bank, UBA, Zenith Bank, GTBank, FBNQuest Merchant Bank, Rand Merchant Bank, Stanbic IBTC, and Standard Chartered Bank.
The Federal Government said it has successfully utilised previous Sukuk issuances to fund the construction and rehabilitation of key road and bridge projects nationwide. The Series VII offer continues this strategy, aligning infrastructure development with economic growth objectives.
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