With N2.205trn, Investors Oversubscribe FG’s N300bn Series VII Sukuk by 735%

Ndubuisi Francis in Abuja

The N300 billion Series VII Sovereign Sukuk recently offered by the Debt Management Office (DMO) on behalf of the Federal Government of Nigeria (FGN) posted an unprecedented subscription level of over N2.205 trillion, according to official information.

This represents a subscription over 735 per cent, a clear demonstration of the huge investor-appetite for the ethical instrument introduced by the DMO in 2017.

According to information made available by the debt management agency yesterday, subscribers for the N300 billion Sukuk with a seven-year tenor and rental rate of 19.75 per cent cut across various segments of the public.

The subscribers were drawn from retail, non-interest banks and financial institutions, deposit money banks, pension fund administrators, and asset/fund managers, among others.

Like the previous series, funds realised from the Issuance would be used by the FGN to construct new roads and rehabilitate existing ones, as well as build bridges in the six geo-political zones of the country and the Federal Capital Territory.

“The raising of funds through Sukuk to finance infrastructure projects aligns with Mr. President’s Renewed Hope Agenda of which infrastructure development is a key pillar.

“The DMO remains committed to providing safe and liquid investment products to the public and supporting the FGN’s development plans,” the DMO said in a statement marking the end of the subscriptions.

The latest Sharia-compliant investment instrument, offered with  a seven-year tenor, ending in May 2032, was opened for subscription on May 12, 2025.

In the offer document, the minimum subscription was set at N10,000 and in multiples of N1,000 per unit, thereby promoting inclusivity.

The sovereign Sukuk has evolved into a key funding tool for Nigeria’s infrastructure development while promoting ethical finance and financial inclusion.

According to analysts, the strong demand and consistent oversubscription of the sukuk instrument since it made its debut in September 2017 reinforce the its credibility, transparency, and broad investor appeal. They posit that the increasing oversubscription in the recent years signals deepening investor confidence and demand for ethical, government-backed securities.

Since the introduction of Sukuk in the federal government’s funding mix for road infrastructure, in 2017, the Series VII N300 billiion remains the biggest so far and the highest subscribed.

The federal government had last year fully and successfully repaid the interest and principal of the premier N100 billion Sukuk issued in 2017.