Invest in Nigeria’s FGN Sovereign Sukuk Bond and Earn 19.75% Annually.

The Federal Government of Nigeria’s highly anticipated Series VII Sovereign Sukuk Bond is now available on AssetBase, offering Nigerians the opportunity to earn 19.75% annual returns while directly contributing to national infrastructure development.

In this article, we’ll break down the FGN Sukuk Bond, how it works, and why it might be the right investment for you.

What Is the FGN Sovereign Sukuk Bond?

The FGN Sovereign Sukuk is a Shariah-compliant investment instrument issued by the Debt Management Office (DMO) on behalf of the Federal Government of Nigeria. It is designed to raise funds specifically for infrastructure development, particularly the construction and rehabilitation of roads, while offering investors a return that complies with Islamic finance principles.

Unlike conventional bonds that pay interest (riba), which is prohibited in Islamic finance, a Sukuk is structured as a rental-based contract (Ijarah). Essentially, investors fund the construction of specific infrastructure projects and are entitled to lease the rental income generated by those assets. The government makes fixed, semi-annual rental payments to investors, similar to bond coupons but structured differently to meet ethical requirements.

Since the first Sukuk was issued in 2017, Nigeria has raised over ₦1 trillion through these offerings, financing thousands of kilometres of roads across all six geopolitical zones.

Why You Should Consider Investing in the FGN Sukuk Bond

1. Backed by the Federal Government

This Sukuk is a sovereign instrument, meaning the full faith and credit of the Federal Government of Nigeria guarantees itearning returns and. That places it among the most secure investment opportunities available locally.

2. Attractive Returns

The Series VII Sukuk offers a 19.75% annual yield, paid to investors every six months. This level of return is not only competitive but also exceeds the average yield on most government-backed instruments with similar tenors.

3. Tax-Free Income

Investors in this Sukuk do not pay withholding tax on the rental income. This tax advantage enhances your effective yield and makes the instrument even more attractive than other fixed-income securities.

4. Ethical and Shariah-Compliant

This bond follows the principles of Islamic finance, making it ideal for faith-based investors and those looking to align their portfolios with socially responsible or ethical investing practices. It promotes inclusivity in the financial market by offering compliant options for Muslim investors and others who prefer non-interest-bearing instruments.

5. Support National Development

Each naira invested in the FGN Sukuk goes toward the development of real infrastructure—roads, bridges, and other critical assets that drive economic growth. With this investment, you’re earning returns and contributing to Nigeria’s long-term development.

6. Tradable and Liquid

Although the Sukuk has a seven-year tenor, investors are not locked in indefinitely. The instrument is tradable on the Nigerian Exchange (NGX), which means you can exit before maturity by selling your units in the secondary market.

Key Investment Details

How It Works

When you invest in this Sukuk:

1. Your funds are pooled with other investors and used to develop government infrastructure projects, particularly roads.
2. A special purpose vehicle (SPV)—FGN Roads Sukuk Company 1 Plc—owns and leases these assets back to the government.
3. The government pays rental income to investors every six months, which is distributed proportionally to your investment.
4. At maturity in 2032, your capital is fully returned.

This structure ensures transparency and accountability, with the DMO regularly reporting and Shariah advisory boards overseeing.

How to Invest

Ready to get started? Here’s how:

1. Create an AssetBase Account (if you don’t already have one).
2. Browse the Sukuk bond listing and make your investment.
3. Enjoy high returns as you watch your investment grow.

Conclusion

The FGN Sovereign Sukuk Series VII is a rare opportunity to earn high, secure returns while supporting the development of Nigeria’s infrastructure. With tax-exempt income, strong government backing, and Shariah compliance, it suits investors looking for safety, income, and ethical investments.

Start building wealth and Nigeria’s future today by investing in the FGN Sovereign Sukuk through AssetBase.