Nigeria’s N300bn Sukuk Bond Smashes Records With 735% Oversubscription.
The Federal Government of Nigeria has achieved a remarkable milestone with its Series VII Sovereign Sukuk, attracting an unprecedented N2.205 trillion in subscriptions against a N300 billion offer, representing a staggering 735% oversubscription. The Debt Management Office (DMO) announced the record-breaking success on Wednesday, highlighting the growing investor confidence in Nigeria’s ethical investment instruments.
The N300 billion seven-year Ijarah Sukuk, launched on 12 May 2025 with a rental rate of 19.75% per annum, drew widespread participation from retail investors, non-interest banks, financial institutions, pension fund administrators, and asset managers. The DMO described the response as “clear evidence of the huge investor appetite” for the Sukuk, first introduced in 2017 as a strategy to broaden Nigeria’s investor base and promote financial inclusion.
Since its debut, the Sovereign Sukuk has raised a total of N1.092 trillion to fund critical infrastructure projects, including over 4,100 kilometres of roads and nine bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory (FCT). The Series VII proceeds will continue this trend, financing the construction and rehabilitation of roads and bridges nationwide, aligning with President Bola Tinubu’s Renewed Hope Agenda, which prioritises infrastructure development for economic growth.
“This overwhelming subscription reflects the trust investors have in the Federal Government’s commitment to transformative infrastructure projects,” said DMO Director-General Patience Oniha. She noted that the Sukuk’s project-tied nature and its contribution to financial inclusion have made it a cornerstone of Nigeria’s capital market. The DMO’s efforts to engage diverse investors, including through an all-parties meeting in Lagos on 26 March 2025, have further boosted awareness and participation.
The Sukuk’s success builds on a strong track record. The first issuance in 2017 raised N105.878 billion, and subsequent offerings have consistently seen high demand, with the 2023 Sukuk attracting a 435% oversubscription. Analysts attribute the growing appeal to the instrument’s ethical framework, transparency, and tangible impact on infrastructure, such as reduced travel times and improved road safety.
Financial experts hailed the achievement as a testament to Nigeria’s deepening capital market. “The 735% oversubscription signals robust investor confidence and the increasing allure of government-backed securities,” said Olalekan Adigun, a financial analyst. The involvement of leading financial advisers, including Stanbic IBTC Capital, Buraq Capital, and Vetiva Capital Management, has further streamlined the issuance process, ensuring broad accessibility.
As Nigeria continues to leverage Sukuk to bridge its infrastructure gap, the DMO reiterated its commitment to providing secure and profitable investment opportunities. The success of Series VII underscores the potential for ethical financing to drive sustainable development, offering a model for other African nations.
