The Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, said 124 federal road projects across the six geopolitical zones were financed by the N1.1trillion raised through six Sovereign Sukuk bonds.


He disclosed this during the 2nd International Islamic Capital Market Conference in Karachi, Pakistan, on Thursday.


The commission in a statement described Sukuk as a resilient and innovative tool for resource mobilisation, noting its significant role in Nigeria’s infrastructure development.


The statement reads, “As the world seeks ethical and inclusive financial solutions, the Securities and Exchange Commission has said that the Federal Government of Nigeria has issued six Sovereign Sukuk worth N1.1tn ($657.6m) to finance 124 federal road projects covering over 5,820 kilometres across the six geopolitical zones of the country.”


Agama stated that since 2017, the issuance of Sovereign Sukuk has been instrumental in the growth of the Islamic Capital Market (ICM) in Nigeria, with each issuance being oversubscribed, recording subscription rates as high as 441 per cent.


He highlighted the increasing issuance of sub-national and corporate Sukuk, citing examples from Osun and Lagos states, Family Homes Ltd, TAJ Bank Plc, and private Sukuk issuances by other entities.


These instruments, he said, have been pivotal in funding school infrastructure, housing projects, and tier-one capital for a bank, showcasing the versatility of Sukuk as a financing tool.


Agama noted that Nigeria’s ICM segment now includes 14 registered Halal mutual funds with a net asset value exceeding N105bn as of November 2024.


Also, the NGX Lotus Islamic Index tracks 11 Shariah-compliant equities, while the country’s first Islamic Real Estate Investment Trust, ChapelHill N-REIT, underscores the potential of real estate investments within the market.


He attributed the growth of the Islamic finance industry in Nigeria to both global and domestic factors.


He cited Nigeria’s large Muslim population, government-backed Sukuk programmes, increasing investor awareness, and emerging innovations in financial technology as drivers of market expansion.