The Debt Management Office (DMO) has announced that the Federal Government of Nigeria successfully raised N2.205 trillion from its N300 billion Series VII Sovereign Sukuk bond, recording an unprecedented 735 percent oversubscription.

In a statement released on Wednesday, the DMO highlighted that the exceptional investor response demonstrates the strong market appetite for the Sukuk instrument, which was first introduced in 2017.

According to the debt office, funds generated from this issuance will be channeled toward constructing new roads, rehabilitating existing ones, and building bridges across Nigeria's six geopolitical zones and the Federal Capital Territory.

Diverse Investor Participation

"An analysis of the subscriptions showed that the subscribers cut across various segments of the public: retail, non-interest banks and financial institutions, banks, pension fund administrators, asset/fund managers, and others," the DMO stated.

The office reaffirmed its commitment to providing safe and liquid investment products to the public while supporting the Federal Government's development plans.

Strategic Infrastructure Financing

The Sukuk bond, which adheres to Islamic finance principles, has become a vital instrument for the Nigerian government to fund critical infrastructure projects since its introduction. The significant oversubscription of this seventh series indicates growing investor confidence in this financing mechanism.

Road infrastructure development remains a priority for the current administration as it seeks to improve connectivity, boost economic activities, and enhance transportation across the country.

The DMO has not provided specific details about which road projects will benefit from this funding, but the even distribution across all geopolitical zones suggests a balanced approach to national infrastructure development.