Kogi Governor Plans N50bn Sukuk for Infrastructure Development

Governor Ahm Ododo of Kogi State revealed plans to raise N50 billion through a Sukuk issuance to finance key infrastructure projects like the Kogi Airport and Lokoja Market. The announcement was made during a meeting with investors, capital market operators, and development finance institutions in Abuja.

The Sukuk, which will strictly adhere to Islamic finance principles, is targeted at funding critical infrastructure projects to drive the state's economic growth. Governor Ododo highlighted the importance of these projects in enhancing logistics, attracting private investments, supporting agro exports, and positioning Kogi as a strategic hub linking major regions in Nigeria.

The Sukuk will have a tenor of five to seven years, with a minimum subscription of N5 million per unit. Fitch Ratings disclosed that Kogi State maintains a disciplined debt profile with a stable credit rating, earning 13% of its revenue from oil production and federal allocations.

The Sukuk proceeds will be exclusively used to finance infrastructure projects in line with Islamic finance principles.