Sukuk FG Raises N11 Trillion to Fund 124 Road Projects
Sukuk and other Islamic finance instruments – ARDnig
The Federal Government has raised N1.1 trillion through Sukuk to finance 124 road projects, impacting over 5,820 kilometers across Nigeria. The success of Islamic finance extends to mutual funds, Shariah-compliant stocks, and real estate investments. With government backing and fintech innovations, Nigerians have opportunities to fund projects and grow wealth ethically.
Introduction to Sukuk and Its Benefits
The Federal Government of Nigeria has successfully raised N1.1 trillion through six Sovereign Sukuk since 2017 to finance 124 road projects across the country. This effort spans over 5,820 kilometers of road infrastructure, ensuring development across all six geopolitical zones. Sukuk, an Islamic financial instrument, offers an innovative way of raising funds without interest. Dr. Emomotimi Agama, the Director General of the Securities and Exchange Commission (SEC), highlighted these achievements at the International Islamic Capital Market Conference in Karachi, Pakistan. This initiative demonstrates how Sukuk can be a valuable tool for mobilizing resources and driving national progress.
Growth of Sukuk in Nigeria
The issuance of Sovereign Sukuk in Nigeria has gained popularity due to its consistent success, with subscription rates reaching up to 441%. This shows the strong demand for Islamic finance products in the country. Beyond federal projects, sub-national and corporate Sukuk are also gaining traction. For instance, states like Lagos and Osun, along with organizations like Family Homes Ltd and TAJ Bank, have leveraged Sukuk to fund housing projects, school infrastructure, and even bank capital. These successes underscore the flexibility and utility of Sukuk as a financing tool.
Opportunities in Islamic Finance
Islamic finance in Nigeria goes beyond Sukuk. The sector boasts 14 registered Halal mutual funds with a combined net asset value of over N105 billion as of November 2024. The NGX Lotus Islamic Index tracks 11 Shariah-compliant stocks, while ChapelHill N-REIT, Nigeria’s first Islamic real estate investment trust, offers opportunities in property investment. These options create pathways for individuals and businesses to grow their wealth in ethical ways.
“Sukuk provides Nigerians with innovative and ethical tools to finance projects and grow their wealth responsibly.”
Factors Driving Islamic Finance Growth
Several factors are driving the growth of Islamic finance in Nigeria. The country’s large Muslim population, government support for Sukuk, and increased awareness of Shariah-compliant investments contribute to market expansion. Globally, the demand for Islamic finance is also fueled by economic diversification and technological innovations. In Nigeria, fintech advancements, such as the introduction of Robo advisory services for Shariah-compliant investments, are opening new opportunities for people to invest smartly and securely.
How to Benefit from Sukuk and Islamic Finance
Sukuk and other Islamic finance instruments provide Nigerians with options to build wealth and fund projects ethically. Whether you are a business owner looking for innovative financing or an individual seeking ethical investment opportunities, Sukuk offers a way to achieve your goals. By focusing on infrastructure, financial inclusion, and sustainability, the Islamic finance market in Nigeria empowers people to meet their personal and business needs effectively.
Conclusion
Sukuk is more than a financial tool; it is a solution for addressing Nigeria’s infrastructure challenges and creating wealth opportunities for its people. By understanding and leveraging Islamic finance, Nigerians can take meaningful steps toward achieving personal and business success.
