The Federal Government has issued six Sovereign Sukuk worth N1.1 trillion ($657.6m), to finance 124 federal road projects covering over 5,820 kilometers across the six geopolitical zones of the country.
The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, highlighted the impressive success rate of the Islamic Capital Market (ICM) during his address at the 2nd International Islamic Capital Market Conference in Karachi, Pakistan. According to him, this notable achievement sets the ICM apart as a robust and innovative mechanism for mobilizing resources.
Agama described the issuance of sovereign Sukuk since 2017 as a key pillar responsible for growth of the ICM in Nigeria, adding that the issuances had consistently been oversubscribed by as high as 441 per cent.
He disclosed that Sub-national and corporate Sukuk issuances were also growing in Nigeria. Notable examples include Osun and Lagos states, Family Homes Ltd, and TAJ Bank Plc, along with private Sukuk issuances by three other sub-nationals, saying the instruments had been instrumental in funding school infrastructure, housing and, a first of its kind in Nigeria, Tier-1 capital for a bank, and underscores the versatility of Sukuk as a financing tool.
“Beyond Sukuk, the ICM segment in Nigeria offers diverse investment opportunities. From one registered fund in 2008, the segment now boasts of 14 registered Halal mutual funds with a net asset value exceeding ₦105 billion as of November 2024. The NGX Lotus Islamic Index tracks 11 Shariah-compliant equities, while Nigeria’s first Islamic Real Estate Investment Trust – ChapelHill N-REIT – highlights the potential of real estate investments.
“Locally, Nigeria’s large Muslim population, government-backed Sukuk initiatives, and growing investor awareness are driving market expansion. Emerging innovations in fintech also present further opportunities for market development. In that regard, the SEC registered the first Robo advisory firm in the Nigerian Capital Market in 2022. This Robo Advisor is focused on Shari’ah-compliant investments,” Agama said.
Adopted in 2015 as part of the broader Nigerian Capital Market Master Plan (2015–2025), he said the Non-Interest Capital Market Master Plan (NICMMP) had been central to developing the ICM segment in Nigeria.
