FG’s Sukuk Highest Subscription Records 735% to N2.21tn in 2025 – DMO

Sukuk Bonds

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The Series VII of the Sovereign Sukuk of the Federal Government has recorded an unprecedented subscription level of over N2.21tn, representing an oversubscription of 735 per cent.

This was revealed by the Debt Management Office on Wednesday, indicating that it offered N300bn on behalf of the Federal Government of Nigeria and recorded the feat.

Earlier in the month, DMO announced the offer of the Sukuk bond, structured as a Forward Ijarah (Lease) Sukuk at a rental rate of 19.75 per cent per annum and due for maturity in May 2032. The offer opened on May 12, 2025, and closed on May 20, 2025. The settlement date was May 23, 2025.

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Sukuks are Islamic or Shariah-compliant ‘bonds’, where the holder has an undivided ownership right in a particular asset and is therefore entitled to the return generated by that asset. The Securities and Exchange Commission revealed that, as a component of Islamic finance, Sukuk is a non-interest-based investment and financing instrument, but its application is not restricted to Muslims, as it conforms to ethical standards and justice.

According to the circular issued by the DMO, the oversubscription evidenced a huge investor appetite for the ethical instrument introduced by the DMO in 2017 as an innovative strategy to expand the nation’s investor base and provide opportunities for all Nigerians to participate in the activities of the capital market.

He said, “An analysis of the subscriptions showed that the subscribers cut across various segments of the public: retail, non-interest banks and financial institutions, banks, pension fund administrators, asset/fund managers and others.

“Like the previous series, funds realised from the issuance will 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 maintained that it remains committed to providing safe and liquid investment products to the public and supporting the FGN’s development plans.