DMO Nigeria (FGN Sukuk) FGN Sovereign Sukuk Programme

Nigeria's sovereign Islamic bond programme, run by the Debt Management Office since September 2017 through the SPV FGN Roads Sukuk Company 1 Plc. Seven Ijara (lease) sukuk series have raised ₦1.3926trn for federal road projects, with rental rates from 11.20% (2020) to 19.75% (May 2025), paid half-yearly. The 2025 series drew ₦2.21trn of subscriptions for a ₦300bn offer, a 735% oversubscription. Retail investors participate from ₦10,000 during public offers via placement agents and issuing houses, and the certificates trade on the NGX and FMDQ. Proceeds have funded over 4,000km of roads and nine bridges across all six geopolitical zones plus the FCT.

The FGN Sukuk programme is the backbone of halal investing in Nigeria. Since 2017 it has raised ₦1.39trn over seven series, every one oversubscribed, culminating in the extraordinary May 2025 result of ₦2.21trn chasing ₦300bn at a 19.75% rental rate. For retail investors it solves two problems at once: it is the only direct claim on the sovereign that pays a fixed non-interest return, and its FRACE certification and road-asset backing give it the cleanest structural story in the market. Buy at the primary offer through a placement agent bank; the NGX listing is best treated as an emergency exit rather than a trading venue, since volumes are modest. The real risk is macro, not credit or compliance: rentals are fixed in naira, and inflation plus depreciation can consume seemingly high rates. Pair with hard-currency assets if wealth preservation is the goal.