The Federal Government has announced the opening of a ₦300 billion Sukuk offer to fund the construction and rehabilitation of critical road and bridge projects across Nigeria’s six geopolitical zones.
The offer, disclosed on Monday by the Debt Management Office (DMO), opened on May 12, 2025, and will close on May 20, 2025. Settlement has been scheduled for May 23, 2025.
According to the offer circular, the 2024 Federal Government of Nigeria Sukuk is structured as a 7-year Ijarah (lease) Sukuk due in May 2032. It offers a rental rate of 19.75 per cent per annum, payable semi-annually, with full principal repayment upon maturity through bullet redemption.
Issued by FGN Roads Sukuk Company 1 Plc on behalf of the Federal Government, the instrument is Shari’ah-compliant and has been certified by the Financial Regulation Advisory Council of Experts of the Central Bank of Nigeria (CBN).
Proceeds from the Sukuk will be dedicated solely to financing key transportation infrastructure projects, including the construction and rehabilitation of roads and bridges nationwide.
The DMO stated that the Sukuk is backed by the full faith and credit of the Federal Government, and qualifies as a liquid asset by the CBN. It is also exempt from taxes for eligible investors such as pension funds, and recognised under both the Company Income Tax Act and the Personal Income Tax Act.
To ensure investor liquidity, the Sukuk will be listed on both the Nigerian Exchange Limited and FMDQ Securities Exchange Limited, allowing secondary market trading.
Each Sukuk unit is priced at ₦1,000, with a minimum subscription requirement of ₦10,000. Further investments must be in multiples of ₦1,000.
Greenwich Merchant Bank Limited, Vetiva Capital Management Limited, and Stanbic IBTC Capital Limited are serving as issuing houses, while technical advisers include CardinalStone Partners Limited, Lotus Financial Services Limited, and Buraq Capital Limited.
Receiving banks include Jaiz Bank, Lotus Bank, Zenith Bank, Stanbic IBTC Bank, and Greenwich Merchant Bank. The offer is also being promoted by several placement agents such as Access Bank, FBNQuest Merchant Bank, UBA, GTBank, Citibank, and Coronation Merchant Bank.
Interested investors have been urged to obtain application forms via the DMO website or from any participating financial institutions.
