Nigeria issues NGN100 billion sovereign Sukuk

Nigeria issues NGN100 billion sovereign Sukuk

Africa’s largest economy, Nigeria has once again diversified its borrowing options by issuing a NGN100 billion Sukuk for local investors.

According to a memo issued by the debt service office, the Sukuk bond will be used to fund road infrastructure.

The bond will carry a seven-year tenor with a yield of 16.47% rate with coupon payment issued twice yearly.

Nigeria has increased its appetite for the local and foreign debt market to fund its budget deficit, a hole created by a sharp shortage in crude oil revenue.

Till date, Nigeria’s federal and state governments have borrowed over NGN1.7 trillion in the last two years.