Sukuk is an alternative Islamic finance instrument for conventional bonds. It represents ownership in underlying real asset. The investor receives income from the use of the assets.
  • Investing in sukuk is a good way to preserve your capital.
  • Traditionally Nigerian Sukuk instruments have outperformed other instruments like equities
  • Furthermore, if the investor holds the Sukuk instrument to maturity, they will receive their original principal investment plus all the accrued rentals
  • Sukuk instruments trade at a premium on the secondary market. Owners enjoy a gain in the price of their instruments
SUKUK BONDS
✓ Represent ownership interest in assets. ✓ Bonds represent a pure debt obligation from the issuer.
✓ The funds raised from Sukuk issuance must be used only for ethical purposes ✓ Bonds can be issued to finance any legal purpose
✓ The sale of Sukuk represents the sale of the holder’s interest in an asset ✓ The sale of a Bond is the sale of a debt.
  • To fund the construction/rehabilitation of key economic infrastructure projects across Nigeria, such as roads.
  • To diversify the sources of government funding.
  • To offer investors an opportunity to invest in government-issued securities.
  • To achieve a higher level of financial inclusion.
  • To serve as a reference for pricing Sukuk issued by other institutions, especially private sector issuers.
The funds will be used for the construction and rehabilitation of sections of key economic roads across the six geopolitical zones of Nigeria
Minimum Subscription is ₦10,000 (i.e., 10 units @ ₦1,000/unit) and in multiples of ₦1,000 (1 unit) thereafter.
  • Construction of Suleja – Chaza – Baburu Road in Niger State
  • Rehabilitation of Gwoza – Damboa – Goniri – Ngamdu in Borno State
  • Construction of Kaduna Eastern By-Pass
  • Rehabilitation of Enugu – Port Harcourt Dual Carriageway (Lokpanta – Umuahia) in Abia State
  • Rehabilitation of Old Enugu – Onitsha Road
  • Dualisation of Obajana Junction to Benin
  • Dualisation of Sapele – Ewu Road in Delta State
  • Construction of Southern Parkway from Christian Centre to Ring Road 1 in Abuja
  • Construction of Eket Bypass in Akwa Ibom
Issuer: FGN Roads Sukuk Company 1 Plc, on behalf of the Federal Government of Nigeria
Description: FGN Sovereign Sukuk due 2031 at a return of 12.8% per annum
Tenor: 10 Years
Issue Size: Up to ₦250,000,000,000
Unit of issue: ₦1,000 per unit
Minimum Subscription: Minimum of ₦10,000 (i.e., 10 units @ ₦1,000/unit) and in multiples of ₦1,000 (1 unit) thereafter
Rental Payment: Semi-annually
Redemption: Bullet payment of invested funds at maturity
Paying Agent/Registrar: The Central Bank of Nigeria
Security: Backed by the full faith and credit of the Federal Government of Nigeria
All Categories of Investors, including:
  • Individuals
  • Institutional Investors
  • Financial Institutions such as Commercial Banks, Insurance/Takaful Companies, Pension Funds and Asset Managers
  • Cooperative Societies, Religious Bodies, State Investment Companies
  • Foreign Investors
  • It is a secure investment backed by the full faith and credit of the FGN.
  • Provides opportunity for the diversification of asset portfolio.
  • Investors will be paid semi-annually.
  • Rental Income is Tax-free.
  • Acceptable as collateral for borrowing from banks and other financial institutions
  • Classified as Liquid Asset by the Central Bank of Nigeria.
  • To be listed and traded on the Nigerian Exchange Limited and the FMDQ SecuritiesExchange Limited, thereby providing liquidity opportunities to Sukuk holders
  • It offers competitive returns to Sukuk holders
Yes. Trading can be done on the floor of the Nigerian Exchange Limited and on the FMDQ Securities Exchange Limited, in accordance with the Prospectus by licensed dealers.
  • Returns due to you will be paid twice a year to the bank account details you provide on the Application Form.
  • At maturity, your principal investment will also be paid to the same bank account details
Your Custodian/CSCS account will be credited with the Sukuk units allotted to you and you will be duly notified of the credit through SMS.
Pay for the number of units you wish to purchase into:
Bank Name Account Name Account Number
Lotus Bank Limited FGN SUKUK IV PROCEEDS ACCOUNT 1600000375
Yes. The Sukuk is backed by the full faith and credit of the Federal Government of Nigeria.
You can request your stockbroker or securities dealer to sell your Sukuk on your behalf on the floor of the Nigerian Exchange Limited or the FMDQ Securities Exchange Limited upon listing.

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