The Federal Government has issued six Sovereign Sukuk worth N1.1 trillion ($657.6m), to finance 124 federal road projects covering over 5,820 kilometres across the six geopolitical zones of the country.

Director-General of Securities and Exchange Commission (SEC), Dr Emomotimi Agama, who stated this during the ongoing 2nd International Islamic Capital Market Conference in Karachi, Pakistan, yesterday, said the success rate made the Islamic Capital Market (ICM) 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 Nigeria, adding that the issuances had consistently been oversubscribed by as high as 441 per cent.

He disclosed that Sub-national and corporate Sukuk issuances were also growing in Nigeria. Notable examples include Osun and Lagos states, Family Homes Ltd, and TAJ Bank Plc, along with private Sukuk issuances by three other sub-nationals, saying the instruments had been instrumental in funding school infrastructure, housing and, a first of its kind in Nigeria, Tier-1 capital for a bank, and underscores the versatility of Sukuk as a financing tool.

Beyond Sukuk, the ICM segment in Nigeria offers diverse investment opportunities. From one registered fund in 2008, the segment now 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 Nigerias first Islamic Real Estate Investment Trust “ ChapelHill N-REIT “ highlights the potential of real estate investments.

Locally, Nigerias large Muslim population, government-backed Sukuk initiatives, and growing investor awareness are driving market expansion. Emerging innovations in fintech also present further opportunities for market development. In that regard, the SEC registered the first Robo advisory firm in the Nigerian Capital Market in 2022. This Robo Advisor is focused on Shariah-compliant investments, Agama said.

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