FG’s latest sukuk offering attracts record ₦2.2trn in bids, 735% oversubscription

The Debt Management Office (DMO) has revealed that its recent series VII sovereign sukuk attracted an unprecedented ₦2.205 trillion in subscriptions—more than seven times the ₦300 billion initially offered—underscoring surging investor demand for ethical, non-interest financial instruments.

The issuance, which closed with a staggering 735% oversubscription, reflects deepening appetite among retail and institutional investors for sharia-compliant assets.

According to the DMO, participants ranged from pension fund administrators and non-interest banks to asset managers, retail buyers, and conventional financial institutions, amongst others.

The offering had a rental rate of 19.75%, a seven-year tenor, and a bullet payment structure at maturity. Rental payments will be made biannually, ensuring regular income for investors.

The offering was opened to all classes of investors, with a minimum subscription of NGN10,000 (at NGN1,000 per unit) and multiples of NGN1,000 thereafter.

“We were overwhelmed with bids,” a top source at one of the issuing houses told BusinessDay.

Introduced in 2017 as part of a strategy to broaden Nigeria’s domestic investor base and diversify funding sources, the sukuk instrument has become a cornerstone in the government’s infrastructure financing toolkit.

Proceeds from the latest round will fund the construction and rehabilitation of roads and bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory, in line with President Bola Tinubu’s “Renewed Hope Agenda,” which prioritises infrastructure as a key pillar for economic revival.

In a statement which announced tyhe deal outcomes, the DMO reaffirmed its commitment to offering secure, liquid investment products while supporting the federal government’s development objectives.

“This is clear evidence of the huge investor-appetite for the ethical instrument introduced by the DMO in 2017 as an innovative strategy to expand the nation’s investor-base and provide opportunities for all Nigerians to participate in the activities of the capital market,” the DMO stated.