Kogi plans ₦50 billion Sukuk to fund International Airport and Market, aiming for March 2026 construction, backed by strong investor confidence.
Kogi State has formally announced an ambitious plan to raise ₦50 billion through a Sukuk bond, aimed at fast-tracking two of its key infrastructure projects: the Kogi State International Airport and the Lokoja International Market.
The government has set March 2026 as the targeted period for fund release and the official commencement of construction.
The plan was unveiled at a well-attended investor engagement and market sensitisation forum in Abuja.
Speaking at the event, the Commissioner for Finance, Budget and Economic Planning, Asiwaju Asiru Idris, emphasized that the Sukuk bond is strictly asset-backed and infrastructure-focused, fully aligned with Kogi State’s long-term development framework.
According to Idris, the Sukuk is not being issued in response to fiscal pressure but as a strategic tool to accelerate the delivery of critical infrastructure projects that will boost economic growth.
“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 added that both the State Executive Council and the Kogi State House of Assembly have approved the transaction, signaling strong political backing.
To further reassure investors, the state has applied for an Irrevocable Standing Payment Order (ISPO) from the Federal Government, a mechanism designed to enhance confidence and secure timely repayment of the bond.
Governor Ahmed Usman Ododo has directed relevant agencies to act swiftly, ensuring the project progresses without unnecessary delays.
While March 2026 is the target for fund release and construction kickoff, Idris noted that minor schedule adjustments would not affect the state’s commitment to delivering the projects on time.
Preparatory work is already underway. Idris disclosed that the procurement process for the airport project is set to begin within weeks.
Kogi State has engaged experienced financial and technical advisers to streamline documentation, ensure regulatory compliance, and fast-track approvals.
These steps aim to create a seamless pathway from fund mobilisation to project delivery.
The Sukuk will be structured as a senior unsecured Ijara Sukuk, issued at ₦1,000 per unit, with a total programme size of ₦50 billion and a tenure of five to seven years.
The bond will be offered through a book-building process, with a minimum subscription set at ₦5 million.
Speaking at the forum, Kayode Fadahunsi, Managing Director of AVA Capital Group, assured investors that both the airport and market projects are structured to generate sustainable revenue streams.
“The revenue generated from these infrastructure projects will be sufficient to support repayment of the Sukuk,” he said.
Fadahunsi also outlined the robust monitoring mechanisms in place.
Funds will be tracked through multiple oversight layers, including the Securities and Exchange Commission (SEC), a Sharia Advisory Board, and an independent Project Management Committee.
This committee will provide quarterly reports on progress and compliance, ensuring transparency and accountability.
Concerns about pricing and listing were addressed during the forum.
Fadahunsi explained that Sukuk instruments are generally competitively priced and can be listed on either the Nigerian Exchange (NGX) or FMDQ, allowing for secondary market trading.
Officials clarified that any call option associated with the Sukuk would only become applicable after the delivery of the underlying assets, consistent with standard Sukuk requirements.
Security remains a top priority for the state. Idris revealed that Kogi has strengthened safety measures across local government areas.
These initiatives include the deployment of surveillance drones, the training of over 1,050 local hunters, and the formal absorption of vigilante operatives into the civil service.
This integrated security approach is designed to protect investors, construction sites, and ongoing operations.
The Sukuk bond, if successfully issued, will mark a significant milestone in Kogi State’s journey toward sustainable infrastructure development.
By raising capital from investors through a structured, Sharia-compliant instrument, the state seeks to unlock resources for projects that will not only improve transportation and commerce but also stimulate local employment and revenue generation.
With clear governance, investor protections, and a strong emphasis on accountability, the Kogi Sukuk initiative demonstrates the state’s commitment to leveraging innovative financial instruments for growth.
The International Airport and the Lokoja International Market are expected to become key economic drivers, attracting further investment and boosting the overall development of Kogi State.
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