On May 29, 2025, the Debt Management Office (DMO) announced that the Federal Government’s Series VII Sovereign Sukuk, offered at N300 billion, recorded an unprecedented subscription of N2.21 trillion, representing a 735% oversubscription. Launched on May 12, 2025, and closed on May 20, 2025, with settlement on May 23, 2025, the seven-year Ijarah (lease-based) Sukuk, due in May 2032, offers a rental rate of 19.75% per annum, payable semi-annually. At the current exchange rate of N1,579/$1 as of May 29, 2025, the subscription equates to approximately $1.4 billion, underscoring its massive appeal.
The Sukuk, a Sharia-compliant non-interest instrument, allows investors to earn returns from ownership in infrastructure assets, aligning with ethical and inclusive financing principles. The DMO highlighted that the oversubscription reflects strong investor confidence since the Sukuk’s introduction in 2017, with subscribers spanning retail investors, non-interest banks, financial institutions, pension funds, and asset managers. The funds will finance the construction and rehabilitation of roads and bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory, supporting President Bola Tinubu’s Renewed Hope Agenda, which prioritizes infrastructure development.
Since 2017, the DMO has raised N1.09 trillion through Sukuk issuances, funding over 4,100 km of roads and nine bridges, reducing travel times, enhancing road safety, and boosting economic access for remote communities. The Series VII Sukuk, the largest to date, reinforces Nigeria’s growing Islamic finance market, with a minimum subscription of N10,000 promoting inclusivity. Posts on X reflect enthusiasm for the Sukuk’s high rental rate and its role in infrastructure growth, though some express concerns about Nigeria’s rising debt obligations.
The DMO, backed by financial advisers like Stanbic IBTC Capital and Greenwich Merchant Bank, remains committed to offering secure investment vehicles. Analysts attribute the Sukuk’s success to its transparency, project-tied structure, and alignment with global demand for ethical investments, positioning it as a cornerstone of Nigeria’s infrastructure financing strategy.
