The Federal Government of Nigeria has raised N1.1 trillion ($657.6M) through six Sovereign Sukuk to finance 124 federal road projects across the country’s six geopolitical zones.
These projects will cover a total of 5,820 kilometers, aimed at enhancing infrastructure and fostering economic growth.
The Director General, Security and ExchangeCommission, Dr. Emomotimi Agama, made this disclosure on Sunday during the ongoing 2nd International Islamic Capital Market Conference in Karachi, Pakistan.
A statement from the Commission quoted Dr. Agama as saying that the high success rate highlights the Islamic Capital Market as a resilient and innovative tool for resource mobilization.
According to the statement, Dr. Agama described the issuance of sovereign Sukuk since 2017 as a key driver of the growth of the ICM in Nigeria.
He noted that these issuances have consistently been oversubscribed, with subscription rates reaching as high as 441%.
He also highlighted the growth of sub-national and corporate Sukuk issuances in Nigeria, citing examples such as Osun and Lagos states, Family Homes Ltd, TAJ Bank Plc, and three other sub-national private Sukuk issuances.
He noted that these instruments have played a crucial role in funding school infrastructure, housing projects, and, notably, the first-ever tier 1 capital for a bank in Nigeria. This underscores the versatility of Sukuk as a financing tool.
“Beyond Sukuk, the ICM segment in Nigeria offers diverse investment opportunities. From one registered fund in 2008, the segment currently boasts of 14 registered Halal mutual funds with a net asset value exceeding N105 billion as of November 2024. The NGX Lotus Islamic Index tracks 11 Shariah-compliant equities, while Nigeria’s first Islamic Real Estate Investment Trust – ChapelHill N-REIT – highlights the potential of real estate investments.
“Locally, Nigeria’s large Muslim population, government-backed Sukuk initiatives, and growing investor awareness are driving market expansion. Emerging innovations in fintech also present further opportunities for market development. In that regard, the SEC registered the first Robo advisory firm in the Nigerian Capital Market in 2022. This Robo Advisor is focused on Shari’ah-compliant investments”.
Agama stated that the success of the ICM in Nigeria is deeply rooted in its strategic focus on infrastructure financing, financial inclusion, and sustainability.
