DMO Lists N130bn Sukuk on Nigerian Exchange

By Aduragbemi Omiyale

The Debt Management Office (DMO) on Thursday listed the N130 billion Sukuk it sold to investors in November 2022 on the Nigerian Exchange (NGX) Limited.

The Islamic debt instrument was issued by the debt office on behalf of the federal government to raise funds for some critical projects in the six geo-political zones of the country.

The 10-year 15.64 per cent Ijara Sukuk is due 2032. The government had intended to get N100 billion from the exercise, but it garnered immense interest from investors, with a remarkable subscription level of N165.25 billion, representing over 165 per cent of the amount offered.

In a bid to accommodate the needs of diverse investors who subscribed to the Sukuk, the DMO allocated N130 billion.

“The listing of the N130 billion Sovereign Sukuk on the NGX will expand the range of financial offerings available to investors in the capital market. The opportunity to buy and sell the Sovereign Sukuk will provide liquidity to investors and promote price discovery,” the debt office said.

In his remarks, the Divisional Head of Capital Markets at NGX, Mr Jude Chiemeka, commended the DMO, under the leadership of Director-General Patience Oniha, for its effective implementation and commitment to following due process in infrastructural financing.

He emphasised the significance of the Sovereign Sukuk issuance and subsequent listing on NGX.

“This listing demonstrates the federal government’s dedication to developing critical infrastructure through innovative and cost-effective financing structures.

“NGX is fully committed to providing a robust exchange infrastructure that facilitates efficient capital accessibility for the government to raise essential funds, addressing the infrastructural gap and boosting economic growth.

“The listing of the Sovereign Sukuk on the exchange is seen as a positive move, offering an exit opportunity for existing investors and further strengthening the Nigerian capital market,” he stated.

Business Post reports that the total Sovereign Sukuk issued from 2017 to date currently stands at N742.557 billion. The proceeds have facilitated the construction and rehabilitation of over 75 roads and bridges across the country.