The Debt Management Office on Monday held an investor meeting in Abuja for the issuance of the N300 billion Series Seven Sovereign Sukuk.

Director-General of the DMO, Patience Oniha, said the Sukuk had since its debut in 2017 become a preferred instrument for non-interest investors in the capital market.

Oniha noted that the growing acceptance of Sukuk affirms one of DMO’s core mandates—developing the domestic capital market while raising funds for the Federal Government.

She said a total of N1.09 trillion had been raised through Sovereign Sukuk between 2017 and 2023, with the funds supporting infrastructure development.

“For the seventh series, the plan is to raise N300 billion to further finance capital projects,” Oniha said.

She recalled that the first Sukuk was issued in September 2017 after an extensive marketing effort, with the N100 billion offer receiving a total subscription of N105.878 billion.

“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 highlighted the benefits of the projects, including reduced travel time, improved road safety, job creation, better access to markets for rural farmers, and improved access to education and healthcare services.

“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 added.

She noted that past Sukuk issuances had received strong investor interest. “Investors get fulfillment of contributing to infrastructure development, and also get a return in terms of income which is paid every six months,” she said.

Oniha stated that financial advisers play a key role in the issuance process, including structuring the Sukuk, managing the offering, and facilitating investor participation.

Attahiru Machido, representing Buraq Capital Limited, financial advisers to the transaction, said the initiative aims to bridge the country’s infrastructure gap.

“The roads must remain usable throughout the lifespan of the Sukuk,” he said.

Olalade Agboola of Greenwich Merchant Bank, a mandated Issuing House, said the Sukuk carries a rental rate of 19.75 percent, with a seven-year tenor. She said the rental would be paid bi-annually, while the principal would be paid at maturity.

“Sukuk is a direct obligation of the Federal Government,” Agboola added.