The Nigerian Federal Government has issued six Sovereign Sukuk worth N1.1 trillion ($657.6 million) to finance 124 federal road projects spanning over 5,820 kilometers across the country’s six geopolitical zones. This announcement was made by Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), during the 2nd International Islamic Capital Market Conference in Karachi, Pakistan.
Dr. Agama highlighted the resilience and innovation of the Islamic Capital Market (ICM) in mobilizing resources, noting that since the introduction of Sovereign Sukuk in 2017, Nigeria’s ICM has grown significantly. These Sukuk issuances have consistently been oversubscribed, with subscription rates reaching up to 441%.
In addition to the federal Sukuk, Dr. Agama pointed to the growing trend of sub-national and corporate Sukuk issuances in Nigeria, citing examples such as Osun and Lagos States, Family Homes Ltd, and TAJ Bank Plc. These instruments have supported various sectors, including education, housing, and even a pioneering tier-1 capital issuance for a Nigerian bank.
The SEC DG also emphasized the broad scope of investment opportunities within Nigeria’s ICM, including 14 registered Halal mutual funds, the NGX Lotus Islamic Index, and the ChapelHill N-REIT, Nigeria’s first Islamic Real Estate Investment Trust.
According to Dr. Agama, the prospects for Nigeria’s Islamic finance industry are buoyed by both global and domestic growth drivers. Globally, the rising demand for Shariah-compliant products is fueled by demographic trends, economic diversification, and regulatory support. Locally, Nigeria’s large Muslim population, government-backed Sukuk initiatives, and increasing investor awareness are accelerating market growth. Innovations in fintech also present further opportunities, exemplified by the SEC’s registration of Nigeria’s first Robo advisory firm focused on Shari’ah-compliant investments.
With a strategic focus on infrastructure financing, financial inclusion, and sustainability, Nigeria’s Islamic finance market continues to evolve, demonstrating the country’s commitment to expanding its Islamic Capital Market.
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