The Debt Management Office (DMO) has announced that its N300 billion Series VII Sovereign Sukuk offering was met with overwhelming investor demand, attracting a total subscription of N2.205 trillion. This figure represents an unprecedented oversubscription level of 735%, highlighting significant investor interest in the ethical, non-interest financial instrument.

The Sovereign Sukuk, an Ijarah (lease-based) bond, was first introduced by the DMO in 2017 as an innovative strategy to diversify the government's funding sources, expand the nation’s investor base, and provide opportunities for all Nigerians to participate in the capital market. This Sharia-compliant instrument has since become a key tool for financing critical infrastructure projects while promoting ethical finance and financial inclusion.

The Series VII Sukuk, which was offered with a seven-year tenor and a rental rate of 19.75 per cent, was opened for subscription on May 12, 2025, and is set to mature in May 2032. The minimum subscription was set at N10,000, with subsequent investments in multiples of N1,000, a move designed to promote inclusivity among a wide range of investors.

An analysis of the subscriptions revealed a diverse pool of participants, cutting across various segments of the public. These included retail investors, non-interest banks and financial institutions, conventional deposit money banks, pension fund administrators (PFAs), and asset/fund managers, among others.

The DMO stated that the funds realized from this issuance will be dedicated to financing the construction of new roads and the rehabilitation of existing ones, as well as the building of bridges across the six geo-political zones of Nigeria and the Federal Capital Territory (FCT). This aligns with the Federal Government's commitment to infrastructure development as a cornerstone of economic progress.

This successful fundraising initiative is in line with President Bola Tinubu’s Renewed Hope Agenda, which identifies infrastructure development as a key pillar for driving economic growth and national development. The DMO emphasized that the consistent oversubscription of Sukuk offerings since their inception signals deepening investor confidence and sustained demand for credible, transparent, and government-backed ethical securities.

The N300 billion Series VII issuance is noted as the largest Sukuk offering by the DMO to date and also the most heavily subscribed. This success builds on a strong track record, including the full and successful repayment of the principal and profit on the maiden N100 billion Sukuk issued in 2017. Between its introduction in 2017 and December 2023, the DMO has raised over N1.09 trillion through six series of Sukuk, all channeled towards road infrastructure development across the country.

The DMO reiterated its commitment to providing safe and liquid investment products to the public and to continuously supporting the Federal Government of Nigeria’s development plans through sustainable and inclusive financing mechanisms like the Sukuk.