The Kogi State Government has announced plans to raise N50 billion through a sukuk issuance to fund the construction of an international airport and a modern international market, to begin by March 2026.
The disclosure was made by Governor Ahmed at an investor engagement and market sensitisation forum held in Abuja, according to the News Agency of Nigeria (NAN).
The planned sukuk is expected to serve as the administration’s flagship infrastructure financing strategy, aimed at accelerating economic transformation and boosting internally generated revenue.
The state government says the sukuk will be fully asset-backed and deployed strictly for infrastructure development, in line with Islamic finance principles.
What they are saying
The Kogi State Government says the sukuk is designed as a transparent, infrastructure-focused instrument targeted at long-term economic growth.
State officials and transaction advisers emphasised that the projects are revenue-generating assets capable of supporting repayment over time.
- “This N50 billion sukuk is for infrastructure, not consumption,” said the Commissioner for Finance, Budget and Economic Planning, Mr Asiru Idris.
- “Today, we are presenting a clear and transparent investment proposition. It is specifically for the Kogi State International Airport and the Lokoja International Market,” Idris added.
- Describing the issuance as a textbook infrastructure sukuk, AVA Capital Group Managing Director, Mr Kayode Fadahunsi, said the projects “can pay themselves down and expand Kogi’s Internally Generated Revenue,” he said.
The speakers maintained that governance structures and regulatory oversight would be central to the success of the issuance.
Kogi State has, over the years, struggled with limited large-scale infrastructure despite its strategic location linking northern and southern Nigeria.
Successive administrations have highlighted the need for transport, logistics and commercial infrastructure to unlock the state’s economic potential and attract private investment.
What you should know
The Kogi State Government says it has already secured the required institutional approvals for the sukuk issuance.
Officials disclosed that approvals have been obtained from both the State Executive Council and the Kogi State House of Assembly.
- An application for an Irrevocable Standing Payment Order has been submitted to the Federal Government to strengthen investor confidence.
- The bidding process for the airport project is expected to commence within weeks.
- Financial advisers, technical consultants and project partners have already been engaged to support execution and value-for-money delivery.
- A Sharia Advisory Board and an Independent Project Management Committee will be established to oversee compliance and transparency.
- The Debt Management Office (DMO) announced that the Federal Government recorded a total of N2.205 trillion subscriptions through the Sovereign Sukuk since its debut in 2017.
- Earlier in May 2025, DMO announced the issuance of a N300 billion 7-year Ijarah Sukuk bond to fund critical road and bridge infrastructure across Nigeria’s six geopolitical zones.
