Nigerian Government Raises NGN 360 Billion in Sukuk Since 2017 to Fund Road Development Projects

The Federal Government of Nigeria has raised a total of NGN 360 billion in Sukuk since its first issuance in 2017, according to data from the Federal Ministry of Works and Housing and the Debt Management Office (DMO). According to the DMO, the funds are to be used for the construction and rehabilitation of important economic infrastructure projects across Nigeria, particularly road development.  

Why it Matters?

The Federal Government issued the bonds in an effort to raise Government funds through diversified sources, and provide an opportunity for ethical investors to buy into Government-issued debt. The Sukuk offering also supports a greater level of financial inclusion and serves as a benchmark for pricing Sukuk issuances by other bodies, in particu...