The Federal Government of Nigeria has spent N1.1tn raised through six Sovereign Sukuk bonds to finance 124 federal road projects spanning over 5,820 kilometres across the six geopolitical zones of the country.
Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama disclosed this during the 2nd International Islamic Capital Market Conference in Karachi, Pakistan, on Thursday.
He said the success rate made the Islamic Capital Market, ICM, to stand out as a resilient and innovative tool for mobilising resources.
Agama described the issuance of sovereign Sukuk since 2017 as a key pillar responsible for growth of the ICM in the country.
The director-general said that the issuance had consistently been oversubscribed, with subscription rate reaching as high as 441 per cent.
He disclosed that sub-national and corporate Sukuk issuances were also growing in the country.
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”Beyond Sukuk, the ICM segment in Nigeria offers diverse investment opportunities.
”From one registered fund in 2008, the segment currently boasts of 14 registered Halal mutual funds with a net asset value exceeding ₦105 billion as of November 2024.
”The NGX Lotus Islamic Index tracks 11 Shariah-compliant equities, while Nigeria’s first Islamic Real Estate Investment Trust – ChapelHill N-REIT highlights the potential of real estate investments.
”The prospects for Nigeria’s Islamic finance industry are underpinned by key growth drivers, both global and domestic,” he said.
Agama said the growth of the ICM segment had come with some challenges including limited public awareness of Islamic finance principles, paucity of tradable instruments, and regulatory alignment across institutions.
He said that capacity building efforts, particularly in Shariah governance and compliance remained critical to sustaining the growth.
Agama encouraged both domestic and foreign investors to explore the opportunities within Nigeria’s Islamic Capital Market, noting that the market addresses critical issues such as infrastructure deficits, financial exclusion, and ethical investment needs.
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