The FGN Sukuk is an investment product that is being issued by the Federal Government of Nigeria through the Debt Management Office (DMO). The purpose of the Sukuk is to offer investors the opportunity to earn returns and contribute to the infrastructure development of the Nigeria.
Sukuk represents undivided shares in the ownership of tangible assets relating to projects, special investment activity, business or joint venture. Sukuk are widely accepted as an important institutional finance instrument to raise capital by both private and public institutions.
The FGN’s Sukuk issuance is the first attempt by the Federal Government to raise funds through the non-interest capital market and aimed at direct infrastructure development and promotion of financial inclusion.
This offer is the culmination of several years of pioneering efforts by financial service regulators – the Central Bank of Nigeria, the Securities and Exchange Commission, the Federal Inland Revenue Service, the National Insurance Commission and the National Pension Commission.
The Sukuk offer will be deployed for the construction of twenty five major federal roads and bridges across Nigeria’s six geopolitical zones. For more information on the FGN Sukuk click here. Click here to access the frequently asked questions (FAQs).
Offer Opening Date: 14 September, 2017
Offer Closing Date: : 20 September, 2017
Benefits of the FGN Sukuk
Investments with as little as N10, 000 (N1, 000 per unit subject to a minimum subscription of N10, 000 and in multiples of N1, 000 thereafter.
Listed on the NSE & FMDQ
Rental payment: fixed, payable half yearly
The Sukuk is secured by the full faith and credit of the Federal Government of Nigeria
The Sukuk are traded like bonds issued by the Federal Government of Nigeria and as such, the rental income is exempt from taxes – companies’ income, personal income, capital gains, and value added taxes.
Investors who wish to cash out their investment in the Sukuk before maturity can trade the Sukuk on the floors of the Nigerian Stock Exchange and FMDQ OTC Securities Exchange for immediate cash.
The Sukuk qualifies as:
Securities in which Pension Fund Administrators may invest under the Pension Reform Act, Cap P4, LFN 2004;
Securities in which trustees can invest under the Trustee Investment Act;
Liquid assets in the estimation of the liquidity ratios of banks by the Central Bank of Nigeria;
Government securities within the meaning of Company Income Tax Act (“CITA”) and Personal Income Tax Act (“PITA”)
Open a CSCS stockbroking account with FBN Securities Limited. Please click here to access our account opening forms for this purpose; (N.B: Existing stockbroking clients with CSCS account numbers will only need to provide their CSCS account details).
Obtain the FGN Sukuk Bond subscription form here
Make payment for subscriptions to any of the accounts below within the subscription period.