Kogi state government has announced plans to raise a ₦50 billion Sukuk bond to fast-track the construction of International Airport and the Lokoja International Market.
The state government targets March 2026 for the commencement of construction.
Governor Ahmed Usman Ododo disclosed this during a meeting with investors, representatives of the Nigerian capital market, fund managers, issuing houses, regulators and development finance institutions in Abuja.
Speaking through the Commissioner for Finance, Budget and Economic Planning, Asiwaju Asiru Idris, the governor said the decision to approach the capital market was driven by strategic ambition rather than fiscal distress.
“This ₦50 billion Sukuk is strictly for infrastructure. It is dedicated to the Kogi State International Airport and the Lokoja International Market,” he said.
He disclosed that the State Executive Council and the House of Assembly had approved the transaction, while the government had also applied for an Irrevocable Standing Payment Order (ISPO) from the Federal Government to strengthen investor confidence.
He added that the procurement process for the airport project would begin within weeks, noting that the state had engaged experienced financial and technical advisers to fast-track documentation and regulatory approvals.
The Sukuk, structured as a senior unsecured Ijara Sukuk, will be issued at ₦1,000 per unit, with a total programme size of ₦50 billion and a tenure of between five and seven years. It will be offered through a book-building process, with a minimum subscription of ₦5 million.
Managing Director of AVA Capital Group, Kayode Fadahunsi, said the projects were structured to generate revenue capable of supporting repayment.
He explained that the funds would be monitored through multiple oversight layers, including the Securities and Exchange Commission (SEC), a Sharia Advisory Board and an independent Project Management Committee, which will provide quarterly reports to stakeholders.
Addressing concerns on pricing and listing platforms, Fadahunsi said Sukuk instruments were generally competitively priced and could be listed on either the Nigerian Exchange (NGX) or FMDQ for secondary market trading.
Officials also clarified that any call option on the Sukuk would only arise after the completion and delivery of the underlying assets, in line with Sukuk requirements.
