The Securities and Exchange Commission (SEC) announced that the Federal Government has issued six Sovereign Sukuk totalling N1.1 trillion (approximately $657.6 million) to fund 124 federal road projects spanning over 5,820 kilometres across Nigeria's six geopolitical zones.

This disclosure was made by SEC's Director General, Dr. Emomotimi Agama, during the ongoing 2nd International Islamic Capital Market Conference in Karachi, Pakistan.

Dr. Agama emphasized the significance of these Sukuk issuances, stating that they have become a cornerstone for the growth of Nigeria's Islamic Capital Market (ICM) since their introduction in 2017.

He highlighted that these financial instruments have consistently been oversubscribed, with subscription rates reaching as high as 441%. The SEC noted that sub-national and corporate Sukuk issuances are also on the rise, with notable examples from Osun and Lagos states, Family Homes Ltd., and TAJ Bank Plc.

The versatility of Sukuk as a financing tool was underscored by Dr. Agama, who pointed out its role in funding various sectors including school infrastructure and housing.

He also mentioned that Nigeria's first Islamic Real Estate Investment Trust, ChapelHill N-REIT, exemplifies the potential for real estate investments within this framework.

Looking ahead, Dr. Agama identified key growth drivers for Nigeria’s Islamic finance industry, both globally and domestically. He noted that demographic trends, economic diversification in oil-dependent economies, and regulatory support are fueling demand for Shariah-compliant products worldwide.

Locally, Nigeria's substantial Muslim population and government-backed Sukuk initiatives are contributing to market expansion, further enhanced by innovations in fintech such as the SEC's registration of Nigeria’s first Robo advisory firm focused on Shari’ah-compliant investments.