The Federal Government has opened a N300bn Sukuk offer for subscription to fund the construction and rehabilitation of key roads and bridges across the six geopolitical zones of the country.
This was contained in the offer circular for the 2024 Federal Government of Nigeria Sukuk, released by the Debt Management Office on Monday.
The offer, which opened on May 12, 2025, is scheduled to close on May 20, 2025, while the settlement date has been fixed for May 23, 2025.
The instrument, known as a 7-year Ijarah Sukuk due May 2032, is being issued by FGN Roads Sukuk Company 1 Plc on behalf of the Federal Government of Nigeria.
The Sukuk is structured as a Forward Ijarah (Lease) and offers a rental rate of 19.75 per cent per annum, payable half-yearly, with full repayment at maturity through a bullet redemption.
According to the offer document, the proceeds will be used solely for the construction and rehabilitation of key road and bridge projects across Nigeria.
The Sukuk is backed by the full faith and credit of the Federal Government and is certified as Shari’ah-compliant by the Financial Regulation Advisory Council of Experts of the Central Bank of Nigeria.
The circular also disclosed that the instrument qualifies as a liquid asset by the CBN and is recognised as a government security under the Company Income Tax Act and Personal Income Tax Act, making it tax-exempt for pension funds and other eligible investors.
It is also recognised under the Trustee Investment Act as an instrument trustees can invest in.
The Sukuk will be listed on the Nigerian Exchange Limited and the FMDQ Securities Exchange Limited, providing liquidity for investors wishing to trade in the secondary market.
Each unit is priced at N1,000, with a minimum subscription of N10,000 and subsequent investments in multiples of N1,000.
Issuing houses for the offer include Greenwich Merchant Bank Limited, Vetiva Capital Management Limited, and Stanbic IBTC Capital Limited. Technical advisers to the issue are CardinalStone Partners Limited, Lotus Financial Services Limited, and Buraq Capital Limited.
Receiving banks named in the circular include Jaiz Bank, Lotus Bank, Zenith Bank, Stanbic IBTC Bank, and Greenwich Merchant Bank. The offer is also being marketed by several placement agents, including Access Bank, FBNQuest Merchant Bank, United Bank for Africa, GTBank, Citibank, Standard Chartered, Coronation Merchant Bank, and others.
Interested investors have been advised to download the application form from the DMO website or approach any of the listed institutions to participate.
