The Securities and Exchange Commission says the federal government issued six Sovereign Sukuk worth N1.1 trillion ($657.6 million) to finance 124 federal road projects.

A statement by SEC said its director-general, Emomotimi Agama, said this during the ongoing second International Islamic Capital Market Conference in Karachi, Pakistan, on Thursday.

Mr Agama said the road projects covered over 5,820 kilometres across the country’s six geopolitical zones.

He said the success rate made the Islamic Capital Market stand out as a resilient and innovative tool for mobilising resources.

Mr Agama described the issuance of sovereign Sukuk since 2017 as a key pillar responsible for the growth of the ICM in the country.

The director-general said the issuance had consistently been oversubscribed, with the subscription rate reaching 441 per cent.

He disclosed that sub-national and corporate Sukuk issuances were growing in the country.

”Beyond Sukuk, the ICM segment in Nigeria offers diverse investment opportunities. From one registered fund in 2008, the segment currently boasts 14 registered Halal mutual funds with a net asset value exceeding ₦105 billion as of November 2024.

”The NGX Lotus Islamic Index tracks 11 Shariah-compliant equities, while Nigeria’s first Islamic Real Estate Investment Trust – ChapelHill N-REIT highlights the potential of real estate investments.

”The prospects for Nigeria’s Islamic finance industry are underpinned by key growth drivers, both global and domestic,” he said.

Mr Agama said the growth of the ICM segment had come with some challenges, including limited public awareness of Islamic finance principles, paucity of tradable instruments, and regulatory alignment across institutions.

He said capacity-building efforts, particularly in Shariah governance and compliance, remained critical to sustaining the growth.

(NAN)