FG Repays Maiden N100bn Sovereign Sukuk, Launches New N300bn Series VII

ABUJA, NIGERIA –In a significant demonstration of its commitment to responsible financial management, the Federal Government of Nigeria has successfully repaid its inaugural N100 billion Sovereign Sukuk, which was issued in 2017. This landmark achievement signifies the complete fulfillment of all obligations to investors, including the principal and periodic rental returns, underscoring the government’s dedication to transparency in debt management.

The announcement was made yesterday at an Investor Meeting in Abuja, hosted by the Debt Management Office (DMO), which coincided with the official launch of a new N300 billion Series VII Sovereign Sukuk.

Speaking at the event, the Director-General of the DMO, Ms. Patience Oniha, highlighted the successful track record of the Sovereign Sukuk as a vital instrument for financing critical infrastructure projects across the nation. She noted that the full repayment of the 2017 Sukuk, which was the first of its kind for Nigeria, reinforces investor confidence in the government’s ability to meet its financial commitments.

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The newly launched N300 billion Series VII Sukuk, a seven-year Ijarah (lease) instrument due in 2032, offers an annual rental income of 19.75%. This non-interest financial instrument, rooted in Islamic finance principles, will channel funds specifically towards the development and rehabilitation of key road infrastructure projects spanning Nigeria’s six geopolitical zones. The offer for subscription commenced yesterday, May 12, 2025, and is scheduled to close on May 20, 2025, with a settlement date of May 23, 2025.

The DMO emphasized that the Sukuk is backed by the full faith and credit of the Federal Government and qualifies as a liquid asset by the Central Bank of Nigeria (CBN). It is also certified by the Financial Regulation Advisory Council of Experts of the CBN, making it an attractive investment option for both conventional and ethical investors.

Capital market analysts present at the meeting lauded the government’s strategic use of Sukuk to diversify its funding sources and address the nation’s infrastructure deficit. They noted that the project-tied nature of Sukuk ensures transparency and accountability in the utilization of funds, fostering economic growth and improved connectivity.

With the successful repayment of the first Sovereign Sukuk and the launch of the new Series VII, Nigeria continues to leverage Islamic finance to support sustainable infrastructure development and deepen its domestic capital market. The DMO has now raised over N1 trillion through Sovereign Sukuk issuances since 2017, demonstrating its effectiveness as a tool for financing essential projects and promoting financial inclusion.