The Securities and Exchange Commission (SEC) has announced that the Nigerian government has issued six Sovereign Sukuk worth ₦1.1 trillion ($657.6 million) to finance 124 federal road projects spanning over 5,820 kilometers across the six geopolitical zones. Dr. Emomotimi Agama, the Director-General of SEC, highlighted this development during his speech at the 2nd International Islamic Capital Market Conference in Karachi, Pakistan. The successful issuance of these Sukuks underscores the growing role of the Islamic Capital Market (ICM) in resource mobilization, as Sukuk issuances in Nigeria have been oversubscribed, with demand reaching up to 441%.
Dr. Agama pointed out the significant growth of Nigeria’s Islamic finance sector, noting that since 2017, Sukuk offerings have become a cornerstone for financing critical infrastructure such as roads, schools, housing, and even banking capital. He also mentioned the success of sub-national and corporate Sukuk in Nigeria, highlighting the efforts of states like Osun and Lagos, along with private institutions like Family Homes Ltd and TAJ Bank Plc. In addition to Sukuk, the ICM segment in Nigeria offers diverse investment options, including Halal mutual funds, Shariah-compliant equities tracked by the NGX Lotus Islamic Index, and the ChapelHill N-REIT, the country’s first Islamic real estate investment trust.
The SEC’s strategic focus on infrastructure financing, financial inclusion, and sustainability has propelled the success of the ICM in Nigeria. Agama discussed the growth drivers of the market, both global and domestic, such as the country’s large Muslim population, government-backed Sukuk initiatives, and investor awareness. He also highlighted the impact of fintech innovations, including the registration of Nigeria’s first Robo-advisory firm for Shari’ah-compliant investments. The SEC’s efforts have been supported by the Non-Interest Capital Market Master Plan (2015–2025), which aims for the ICM to contribute 25% of market capitalization by 2025. With notable achievements already in place, the plan is positioning Nigeria’s Islamic finance sector for continued growth.