DMO lists N250 billion Sukuk on the Nigerian Exchange

The Debt Management Office recently listed the N250 billion, 10-year, 13% Ijarah Sovereign Sukuk on the Nigerian Exchange abd the FMDQ Securities Exchange.

The listing was done after meeting the requirements established by the Central Bank of Nigeria's Financial Regulatory Advisory Council of Experts, which stated that trading in the instrument will only be permitted after the start of work on the highway projects set for construction through the Sukuk assets. The NGX claims that the listing would improve trade, give investors liquidity, and expand the Nigerian capital market.

The rehabilitation and building of significant economic road projects across the world would be funded by the Ijarah Sovereign Sukuk, which was released on December 29, 2021.

The Debt Management Office (DMO) is listing the N250 billion Sovereign Sukuk, issued in December 2021, on the Nigerian Exchange Limited and the FMDQ Securities Exchange in order to maximize market liquidity for investors in the Sovereign Sukuk.

According to the Nigerian Exchange, “The issuance and subsequent listing of the Sovereign Sukuk on the NGX platform underscore the Federal Government’s drive to develop the critical infrastructure needed to unlock economic growth by leveraging innovative and cost-effective financing structures.”

This is the fourth Sovereign Sukuk to be approved by the DMO. At the time of writing, it had a huge oversubscription of N865 billion, which was the highest level ever documented since the very first Sukuk issuance in September 2017. This shows that investors' optimism in the pluses of SUKUK to the growth of the Nigerian economy is rising.

According to a DMO press release, since its establishment, proceeds from the Sovereign Sukuk have been used to build and renovate road networks throughout Nigeria's six geopolitical zones, and the results are clear. Presently, funds from the N250 billion sovereign sukuk have been used to fund 77 important economic road projects across the nation, including the completion of roads B6, B12, and Circle road in Abuja; the Abuja-Lokoja road (Koton Karfe-Lokoja); the rehabilitation of Yola-Hong-Mubi road in Adamawa State; the dualization of Kano-Katsina road in Kano/Katsina among others.