Nigeria’s debt management office announces N100 billion Sukuk bond

The Debt Management Office (DMO) on Monday announced that it has commenced the sale of a N100 billion Sukuk bond on the local market to fund the construction and rehabilitation of major roads across the country.

According to a memo issued by the Debt Office, the ten-year Islamic bond which is structured as a lease (forward Ijarah) will yield a 15.64 per cent rental rate per annum.

The DMO said the bond subscription is backed by the full faith of the government and that the offer will lapse by November 29. It asked interested investors to contact Greenwich Merchant Bank Limited, Vetiva Capital Management Limited and Stanbic IBTC Capital Limited for issuance.

In the bid to finance its annual budgetary expenditures, Nigeria has over the years borrowed from both local and foreign sources amid shrinking revenues.

Last Thursday, the Director-General of the Debt office, Patience Oniha, spoke on the nation’s borrowing plans at a Workshop on Topical Issues in Public Debt Management in Abuja.

“We have been dependent on borrowing as a country for a very long time because the revenue base is low and it is now threatening debt sustainability,” she said.




“We need urgent actions to moderate the level of new borrowing and strengthen our revenue base.

“There has been a lot of talk about raising revenue. We now need urgent actions. We need a stronger revenue base to ensure that our debt remains sustainable.”