The Federal Government has fully redeemed its maiden Sovereign Sukuk of N100 billion issued in 2017, fulfilling all investor obligations and reaffirming its commitment to responsible debt management.
The announcement was made Monday during an Investor Meeting in Abuja hosted by the Debt Management Office (DMO), coinciding with the launch of a new N300 billion Series VII Sukuk aimed at funding critical road projects nationwide.
DMO Director General, Patience Oniha, confirmed that all 2017 Sukuk holders had received their full principal and rental payments, noting the redemption marked a key milestone in Nigeria’s Islamic finance journey.
“The structure was transparent and compliant, with CBN ensuring scheduled disbursements. Now, we’ve closed that cycle successfully,” Oniha said.
She linked Nigeria’s improving debt outlook—recently upgraded by Fitch Ratings—to ongoing fiscal and monetary reforms, including enhanced foreign exchange policies and stronger oil revenue initiatives.
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Oniha acknowledged the country’s debt stock hit ₦144.67 trillion as of December 2023, driven partly by naira depreciation and inclusion of N30 trillion in Ways and Means advances. However, she emphasized the debt remains sustainable, with over 60% of external borrowings coming from concessional sources.
On domestic borrowing, she highlighted active participation in long-tenure bonds, Treasury bills, and Sukuk, catering to both institutional and retail investors.
“Sukuk has become a trusted funding tool, attracting a diverse investor base and helping build critical infrastructure,” Oniha said.
The new N300 billion Sukuk proceeds will continue this legacy by financing roads across the federation. The DMO reiterated its commitment to transparency, ethical investment, and investor confidence as Nigeria expands its infrastructure base for inclusive growth.