Sukuk has become one of the most viable Islamic finance funding mechanisms utilized in recent years and is a significant infrastructure development financing tool, for emerging markets, and developed economies, a catalyst for financial inclusion and income diversification.
It focuses on long-term infrastructure projects, human capital development, and sustainable finance and is asset-backed.

Nigeria as one of the largest African countries has issued four Sukuk instruments through the Debt Management Office (DMO), supporting the government and the economy.

In Nigeria, the Sukuk programme supports the construction and rehabilitation of critical economic infrastructure, such as roads across the six geopolitical zones, and diversifies government funding sources.

The debt office commenced the issuance of Sukuk in September 2017, and since the establishment of the initiative, Sukuk has been deployed for the construction and rehabilitation of 71 roads and four bridges covering a total of 2,820 km.

The total amount of Sukuk raised by DMO Nigeria as of December 2022 is N742.56bn.

Due to Sukuk’s impact on Nigeria’s economy, The DMO on Monday presented an N130bn Sukuk cheque to the Federal Ministry of Works and Housing, (FMWH), and the Federal Capital Territory Administration, (FCTA).

According to DMO, the N130 billion is the proceeds of the 2022 Sukuk, which was successfully issued by the DMO on behalf of the federal government. The release would form part of the 2022 budget, which implementation has been extended to March 2023 by the National Assembly. The FMWH will get N110 billion while the FCTA will receive N20 billion. Sovereign Sukuk had contributed immensely to raising funds for road projects across Nigeria.