As the world seeks ethical and inclusive financial solutions, the Securities and Exchange Commission(SEC) has said that the Federal Government of Nigeria has issued six Sovereign Sukuk worth ₦1.1 trillion ($657.6M), to finance 124 Federal road projects covering over 5,820 kilometers across the six geopolitical zones of the country.
Director General of the SEC, Dr. Emomotimi Agama, who stated this during the ongoing 2nd International Islamic Capital Market Conference in Karachi, Pakistan, Thursday, said the success rate makes the Islamic Capital Market, ICM stand out as a resilient and innovative tool for mobilizing resources.
Agama described the issuance of sovereign Sukuk since 2017 as a key pillar responsible for growth of the ICM in Nigeria adding that these issuances have consistently been oversubscribed, with subscription rates reaching as high as 441%.
He disclosed that Sub-national and corporate Sukuk issuances are also growing in Nigeria. Notable examples include Osun and Lagos states, Family Homes Ltd, and TAJ Bank Plc, along with private Sukuk issuances by three other sub-nationals saying that these instruments have been instrumental in funding school infrastructure, housing and a first of its kind in Nigeria, tier 1 capital for a bank and underscores the versatility of Sukuk as a financing tool.
“Beyond Sukuk, the ICM segment in Nigeria offers diverse investment opportunities. From one registered fund in 2008, the segment currently boasts of 14 registered Halal mutual funds with a net asset value exceeding ₦105 billion as of November 2024. The NGX Lotus Islamic Index tracks 11 Shariah-compliant equities, while Nigeria’s first Islamic Real Estate Investment Trust – ChapelHill N-REIT – highlights the potential of real estate investments.