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In a bid to fast-track the construction of the Kogi State International Airport and the Lokoja International Market, the Kogi State Government has announced plans to raise a ₦50 billion Sukuk bond, with construction expected to commence by March 2026.
The plan was unveiled at an investor engagement and market sensitisation forum held in Abuja, where the Commissioner for Finance, Budget and Economic Planning, Asiwaju Asiru Idris, said the Sukuk would be asset-backed, infrastructure-driven and aligned with the state’s long-term development agenda.
Idris explained that the Sukuk programme was designed solely to accelerate the delivery of critical infrastructure and not as a response to 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 both the State Executive Council and the Kogi State House of Assembly had approved the transaction, adding that the government had also applied for an Irrevocable Standing Payment Order (ISPO) from the Federal Government to further enhance investor confidence.
According to him, Governor Ahmed Usman Ododo has directed that the process be fast-tracked, with March 2026 set as the target period for fund release and construction take-off.
“Our target is March. Even if there is a slight shift, it will not derail the project, but we are determined to avoid unnecessary delays,” Idris assured.
The Sukuk, to be 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.
Speaking at the forum, the Managing Director of AVA Capital Group, Kayode Fadahunsi, said the projects were structured to generate sustainable revenue capable of supporting repayment obligations.
He noted that the utilisation of funds would be subjected to strict monitoring through multiple oversight mechanisms, including the Securities and Exchange Commission (SEC), a Sharia Advisory Board and an independent Project Management Committee, which will issue quarterly reports to stakeholders.
On pricing and listing concerns, Fadahunsi explained that Sukuk instruments are generally competitively priced and may be listed on either the Nigerian Exchange (NGX) or FMDQ to enable secondary market trading.
Addressing security concerns around the projects, Idris said the state had strengthened its security architecture through the deployment of surveillance drones, the training of over 1,050 hunters across local government areas and the absorption of vigilante operatives into the civil service.
Edited by Dada Ahmed.
