FGN N100bn Sukuk offer oversubscribed despite CAN’s alleged Islamization plot

  • Offer attracted a Total Subscription of N105.878 billion.
  • Over a thousand retail investors accounted for over 4% of the total subscription

The Debt Management Office (DMO) has announced that its offer for the N100 billion 7-year debut Sukuk Offer, which closed last week Friday was oversubscribed despite Christain Association of Nigeria (CAN) alleged Islamization plot.

Investors across a broad spectrum comprising Pension Funds, Banks, Fund Managers, Institutional and Retail Investors subscribed to the Offer in an indication of the wide acceptance of the instrument. The Offer attracted a Total Subscription of N105.878 billion.

BarometerNG recalls that the Christain Association of Nigeria (CAN) early last week described the issuance of the 100 Billion Naira Ijarah Sukuk Bond as an attempt by the Federal Government to ‘Islamise Nigeria and sell the nation to Arab nations’.

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However, the Federal Government, National Supreme Council for Islamic Affairs, Muslim Rights Concern, The Muslim Congress and many others including Minister of Finance Kemi Adeosun, Minister of Information and Communication Lai Muhammad had to enlightened and schooled CAN

With the success of the Offer, another window has been opened for the Government to raise funds to close Nigeria’s infrastructure gap. The DMO had indicated that funds would be utilised for the construction and rehabilitation of 25
Roads across the 6 Geopolitical zones and with the conclusion of the Offer, the Federal Ministry of Power, Works and Housing can now actively commence work on the roads.

With this Issuance, a new instrument, the Sovereign Sukuk, has been introduced to Nigeria’s capital market, thereby increasing the variety of products available for domestic Issuers and investors.

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A look at the investors that subscribed for the Sovereign Sukuk revealed that new investors have been offered an opportunity to participate in Nigeria’s growing capital market.

Another significant objective that was achieved was the participation by over a thousand retail investors from across the nation who accounted for over 4% of the total subscription.

The DMO is pleased with the success of the first Offer and will continue with its role of meeting the Government’s funding needs as well as introducing new instruments to develop Nigeria’s capital market.

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