The Securities and Exchange Commission (SEC) has said the Federal Government issued six Sovereign Sukuk worth N1.1 trillion ($657.6m) to finance 124 federal road projects.
A statement by the SEC quoted its Director-General, Dr Emomotimi Agama as making this disclosure yesterday (Thursday, December 12) at the ongoing 2nd International Islamic Capital Market Conference in Karachi, Pakistan.
Agama said the road projects covered over 5,820 kilometers across the six geopolitical zones of the country.
He 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 in 2017 as a key pillar responsible for growth of the ICM in the country.
The Director-General said 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 are also growing in the country.
“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.
