The Nigerian Exchange Limited (NGX) recently listed the Federal Government’s N130bn sovereign Sukuk through the Debt Management Office (DMO) on its platform. The listed Sukuk is a 10-year 15.64 per cent Ijara Sukuk due in 2032. The sovereign Sukuk had garnered significant interest from investors during its subscription period, with an oversubscription level of over 165 per cent. The listing on NGX is expected to provide liquidity to investors and promote price discovery.
Opinion:
The listing of the sovereign Sukuk on the Nigerian Exchange is a positive development for the country’s capital market and infrastructure financing. Sukuk is an Islamic financial instrument that can attract a diverse pool of investors, enhancing the government’s ability to fund critical infrastructure projects. By listing the Sukuk, investors now have an opportunity to trade and access the instrument, increasing liquidity and facilitating more transparent price discovery. This move further demonstrates the government’s commitment to innovative and sustainable financing solutions for infrastructural development.
