Nigeria’s N300bn Sukuk Offering Oversubscribed by 735%, Attracts N2.2tn in Subscriptions

The Debt Management Office (DMO) has announced a resounding success in its recent Series VII Sovereign Sukuk issuance, which drew an overwhelming subscription of N2.2 trillion against an initial offer of N300 billion, representing an oversubscription rate of 735%.

In a statement released on Wednesday, the DMO described the performance as unprecedented, reflecting a growing investor appetite for Sukuk—Nigeria’s ethical, interest-free financial instrument first introduced in 2017 to broaden investor participation and support infrastructure development.

“This is clear evidence of the huge investor appetite for the ethical instrument introduced by the DMO in 2017 as an innovative strategy to expand the nation’s investor-base and provide opportunities for all Nigerians to participate in the activities of the capital market,” the DMO said.

According to the agency, the subscriptions came from a wide range of investors, including retail buyers, non-interest banks, conventional financial institutions, pension fund administrators, and asset/fund managers—further demonstrating the instrument’s broad appeal across sectors.

The N300 billion Sukuk, which is structured as a seven-year forward Ijarah (lease) arrangement at a rental rate of 19.75% per annum, was officially opened to investors on May 12, 2025.

The DMO reiterated that proceeds from the offering would be deployed toward financing key infrastructure projects—particularly the construction and rehabilitation of roads and bridges across Nigeria’s six geo-political zones and the Federal Capital Territory (FCT).

“Like the previous series, funds realized from the issuance will be used by the FGN to construct new roads and rehabilitate existing ones, as well as build bridges in the six (6) geo-political zones of the country and the Federal Capital Territory,” the DMO explained.

The agency noted that the successful Sukuk offering aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritizes infrastructure development as a key driver of economic transformation.

The DMO reaffirmed its commitment to providing secure, liquid, and diverse investment products to the Nigerian public, while supporting the federal government’s drive to close the infrastructure gap through innovative and inclusive financing mechanisms.

Since its debut in 2017, Nigeria’s Sovereign Sukuk programme has raised several hundreds of billions of naira in capital and has emerged as a reliable instrument for ethical investment and national development.