The Debt Management Office, DMO, yesterday said that the Series VII Sukuk bond through which it offered N300 billion, on behalf of the Federal Government of Nigeria (FGN), recorded over N2.205 trillion subscriptions, representing an excess of 635 percent.

FG?s domestic borrowings are executed on bonds including Sukuk, a Sharia compliant investment instrument.

DMO disclosed this yesterday in the results of the last exercise it executed between May 12 and May 20, 2025, published on its website noting that the development indicated a vivid evidence of the huge investor appetite.

It said the Sukuk was the ethical instrument it introduced 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.

It stated: ?The Series VII Sovereign Sukuk through which the DMO offered N300 billion, on behalf of the FGN, recorded an unprecedented subscription level of over N2.205 trillion. This represents an excess of 635 percent subscription.

?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.

?An analysis of the subscriptions showed that the subscribers cut across various segments of the public: retail, non-interest banks and financial institutions, banks, pension fund administrators, asset/fund managers and others.

?Like the previous series, funds realized from the Issuance will be used by the FGN to construct new roads and rehabilitate existing ones, as well as build bridges in the six (6) geo-political zones of the country and the Federal Capital Territory (FCT).

?The raising of funds through Sukuk to finance infrastructure projects aligns with the President?s Renewed Hope Agenda of which infrastructure development is a key pillar?.

There had been six series of the Sovereign Sukuk issuance since its debut in 2017. The subscription offers were made in 2017, 2018, 2020, 2021, 2022, and 2023.

Within the period, a total of N850 billion was offered by DMO on behalf of the federal government in the six outings. However, a total of N1.092 trillion was raised, a demonstration of a great appetite for Sukuk, resulting in a massive over-subscription. (Vanguard)

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