FGN Sovereign Sukuk
The Federal Government of Nigeria, through the Debt Management Office (DMO), is issuing the 7th Series of the FGN Sovereign Sukuk, with a total offering of ₦300 billion aimed at financing capital projects across the six geo-political zones in the country. Like previous issuances, this Sukuk is structured under Ijarah (lease-based) contracts, providing investors with periodic rental returns. This issuance presents a secure and Shariah-compliant investment vehicle for investors.
What is Sukuk?
Sukuk (plural of Sakk) is a Shariah-compliant investment certificate that represents proportional ownership in tangible assets, usufructs, or specific projects.
Unlike conventional bonds, which are interest-bearing debt instruments, Sukuk are structured to generate returns from asset-backed income in compliance with Islamic principles, avoiding riba (interest), gharar (excessive uncertainty), and maysir (speculation).
The underlying contracts used in Sukuk structures include Ijara (leasing), Murabahah (cost-plus sale), Mudarabah (partnership), and Istisna (construction/manufacturing). Among these, Ijara Sukuk is the most common for sovereign issuances, where investors earn income from leasing assets to the government through an SPV, with rental payments made
by the government as a lease.
How Ijarah Works
Ijarah is a leasing contract where an asset is acquired by one party (the lessor) and leased to another party (the lessee) for a fixed rental fee and period. Ownership of the asset remains with the lessor throughout the lease term, while the lessee enjoys the right to use the asset.
In the FGN Ijarah Sukuk structure, funds are raised from investors to finance the construction of specified public infrastructure projects (e.g., roads). The assets do not exist at the time of Sukuk issuance. Once constructed, the assets are leased to the government through a Special Purpose Vehicle (SPV) acting on behalf of investors. The government pays periodic rent, which is distributed as returns to the Sukuk holders. At maturity, the SPV, acting as lessor on behalf of investors, sells the underlying assets to the government (the lessee), thereby transferring ownership. The proceeds from this sale are used to repay the investors’ capital through the Special Purpose Vehicle (SPV).
Why Invest in FGN Sukuk?
Ethical, Shariah-Compliant Returns
FGN Sukuk offers returns that comply with Islamic principles
Secure and Low-Risk
Your investment is backed by the Federal Government of Nigeria and tied to physical infrastructure projects, making it a safe and reliable option.
Support for National Development
Funds raised through Sukuk are used to finance roads, schools, hospitals, and other infrastructure, directly contributing to Nigeria’s development.
Tradable Investment
Sukuk can be bought and sold on the secondary market, giving you flexibility if you choose to exit before maturity.
Tax-Free Income
Earnings from FGN Sukuk are exempt from income tax and withholding tax, allowing you to keep more of your returns.
Accepted as Collateral
Sukuk certificates can be used as collateral to access financing from banks and other financial institutions.
How to Participate in the FGN Sovereign Sukuk
To invest in the FGN Sovereign Sukuk, follow these steps:
Visit any designated Issuing House or Receiving Agent to get the official application form.
Fill in your personal and investment details accurately.
Invest a minimum of ₦10,000, with additional investments in multiples of ₦1,000. Ensure your payment includes your full name and BVN in the payment narration.
Return the completed application form along with your proof of payment to the Issuing House or Receiving Agent.
Once your application is processed, you will receive confirmation, and your Sukuk units will be credited to your designated CSCS or bank account.
Why Invest through Marble Capital?
Trusted Partner: Marble Capital is a SEC-licensed fund manager, authorized to distribute the FGN Sovereign Sukuk, ensuring a secure and transparent investment process.
Seamless Subscription: Access and submit your Sukuk application forms easily through the Marble Capital website, with expert guidance available every step of the way.
CSCS Account Facilitation: We assist in opening a CSCS account to ensure your Sukuk units are securely credited and efficiently managed.
Investment Confirmation: Receive an official Investment Confirmation Letter upon successful subscription, confirming your Sukuk holdings.