Nigeria Successfully Redeems First Sovereign Sukuk, Launches New ₦300 Billion Series

Babatunji Wusu –

• Nigeria fully redeems ₦100 billion Sovereign Sukuk issued in 2017

• Investors received both principal and rental returns

• ₦300 billion Series VII Sukuk officially introduced

• Central Bank of Nigeria served as Paying Agent

• Macroeconomic indicators improving, credit outlook upgraded

• FX market reforms showing early signs of success

The Federal Government of Nigeria has successfully redeemed its first-ever Sovereign Sukuk, valued at ₦100 billion and issued in 2017. This repayment includes both the principal and all accrued rental returns to investors, underscoring the government’s commitment to transparent and prudent debt management.

The announcement was made at an Investor Meeting organized by the Debt Management Office (DMO) in Abuja, where the government also launched the new ₦300 billion Series VII Sukuk. Under the Sukuk framework, the Central Bank of Nigeria acted as the Paying Agent, handling periodic rental distributions.

At maturity, the government repurchased the road infrastructure assets underlying the Sukuk and made lump-sum principal payments to investors, thus concluding the investment cycle.

Speaking at the event, DMO Director General Patience Oniha pointed to positive macroeconomic trends, including a recent credit outlook upgrade by Fitch Ratings. She attributed these improvements to ongoing fiscal and monetary reforms, especially efforts by the Central Bank to stabilize the foreign exchange market.

“Transparency has improved significantly. FX supply is increasing, and exchange rates are stabilizing,” Oniha stated, emphasizing that while progress takes time, current policies are guiding Nigeria toward sustainable economic growth.