In a landmark financial achievement, Nigeria has fully repaid its landmark N100 billion SUKUK bond issued in 2018, demonstrating the country's growing credibility in international Islamic finance markets. The successful completion marks another milestone in the nation's innovative infrastructure financing strategy.

Professor AbdulRazzaq A. Alaro, a renowned Islamic finance expert from the University of Ilorin, celebrated the momentous occasion, noting that this represents the second consecutive year Nigeria has proven itself a reliable partner in global Islamic financial circles. The seven-year bond, which was originally issued in December 2018, was completely settled on December 31, 2025, sending a powerful signal to potential international investors.

The SUKUK bond program has been transformative for Nigeria's infrastructure development. Since its inception in 2017, the government has raised over N1 trillion through these specialized financial instruments, funding the construction and rehabilitation of more than 5,000 kilometers of roads across all six geopolitical zones of the country. This approach has effectively addressed one of Nigeria's most persistent challenges: widespread infrastructure decay.

The bond issuance strategy has been consistent and strategic. Starting with an inaugural N100 billion SUKUK in September 2017, the government has continued to leverage this financing mechanism. Subsequent offerings included a N150 billion 7-year SUKUK in 2020 at 11.20% annual rental rate, and a N100 billion bond in 2021 with a 15.64% annual return due in 2032.

Beyond its financial significance, the SUKUK represents a win-win approach for both investors and the Nigerian government. Investors have enjoyed steady returns, while the government has secured an affordable and sustainable method of infrastructure funding. The bond is classified as a government security, listed on the Nigerian Exchange and FMDQ Securities Exchange, and recognized as a liquid asset by the Central Bank of Nigeria.

The most recent N150 billion 10-year SUKUK, offered at 15.75% per annum in October 2023, was significantly oversubscribed, indicating strong market confidence in Nigeria's financial management and infrastructure development strategy. This continued success positions Nigeria as an emerging leader in Islamic finance markets, attracting international attention and potential future investments.

Professor Alaro's enthusiastic declaration—"Congratulations to all the stakeholders in the Sukuk market, congratulations and long live Federal Republic of Nigeria"—captures the collective pride and optimism surrounding this financial achievement. The successful bond repayment not only demonstrates fiscal responsibility but also represents a innovative approach to national development.