The Debt Management Office (DMO) has revealed its offering of Ijarah Sukuk valued at N150 billion in a recent statement.

These bonds are issued by the Federal Government of Nigeria (FGN) Roads Sukuk Company PLC on behalf of the Government.

The Sukuk is available at N1,000 per unit, with a minimum subscription of N10,000 and multiples of N1,000 thereafter.

The Ijarah Sukuk is backed by the full faith and credit of the Federal Government and is considered a liquid asset by the Central Bank of Nigeria (CBN). It is also certified by the Financial Regulation Advisory Council of Experts of the CBN.

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Rental payments will be made semi-annually, with a bullet repayment on the maturity date. The proceeds from the Sukuk offering will be utilized exclusively for the construction and rehabilitation of vital road projects and bridges across Nigeria’s six geopolitical zones.

It meets the criteria for securities in which trustees can invest under the Trustee Investment Act and qualifies as government securities for tax exemption purposes under the Company Income Tax Act and Personal Income Tax Act, especially for pension funds.

The Sukuk is set to be listed on both the Nigerian Exchange Limited and FMDQ Securities Exchange Limited.