The Securities and Exchange Commission (SEC) has revealed that the Federal Government of Nigeria has raised ₦1.1 trillion ($657.6 million) through six Sovereign Sukuk to finance 124 federal road projects.
Speaking at the 2nd International Islamic Capital Market Conference in Karachi, Pakistan, SEC Director-General Emomotimi Agama stated that the projects span over 5,820 kilometres, cutting across the six geopolitical zones of the country.
Agama highlighted the success of the Sukuk programme, noting that it has been consistently oversubscribed, with subscription rates reaching up to 441 per cent. He described the Sukuk as a key driver for the growth of Nigeria’s Islamic Capital Market (ICM), providing a resilient and innovative mechanism for resource mobilisation.
Beyond Sukuk, Nigeria’s ICM segment has expanded significantly, with 14 Halal mutual funds currently registered, boasting a net asset value exceeding ₦105 billion as of November 2024. Additionally, the NGX Lotus Islamic Index tracks 11 Shariah-compliant equities, while Nigeria’s first Islamic Real Estate Investment Trust (ChapelHill N-REIT) highlights the growing potential in the real estate sector.
Agama also acknowledged challenges to the ICM’s growth, including limited public awareness of Islamic finance principles, a lack of tradable instruments, and regulatory inconsistencies. However, he emphasised that capacity-building efforts in Shariah governance and compliance are crucial to overcoming these hurdles and sustaining growth in the sector.
Credit: NAN (Text Excluding Headline)
