The Kogi State Government has announced plans to raise ₦50 billion through a Sukuk bond to finance the construction of the Kogi State International Airport in Zariagi and the Lokoja International Market.
Governor Ahmed Usman Ododo disclosed this at a meeting with investors and capital market stakeholders in Abuja, through the Commissioner for Finance, Asiwaju Ashiru Idris.
He said the decision to access the capital market was driven by the administration’s strategic objective of securing sustainable funding for critical infrastructure projects.
According to the governor, the ₦50 billion Sukuk bond is strictly asset backed and will be deployed exclusively for the two projects, in full compliance with Sukuk principles.
Governor Ododo explained that the proposed international airport would enhance logistics, attract investment, support agro exports, and position Kogi State as a key economic hub. He added that the Lokoja International Market would formalise trade, boost internally generated revenue, create jobs, and strengthen the local economy.
He reaffirmed the administration’s commitment to fiscal discipline and governance reforms, noting that Kogi State has received a ‘B’ credit rating with a stable outlook from Fitch Ratings and now benefits from 13 per cent derivation revenue following its recognition as an oil producing state.
The governor assured investors that proceeds from the bond would not be used for recurrent expenditure but would be channelled solely into infrastructure projects aimed at expanding productivity, stimulating commerce, and strengthening the state’s long term repayment capacity.
Also speaking, the Managing Director of AVA Capital Group and a member of the advisory team, Mr Kayode Fadahunsi, described the offer as a textbook infrastructure Sukuk, noting that the projects are revenue generating assets capable of servicing the bond.
He explained that the Sukuk, structured as a senior Ijara Sukuk, would be offered at ₦1,000 per unit, with a total issuance size of ₦50 billion and a tenor of five to seven years. Subscription, he added, will be through book building, with a minimum investment of ₦50 million.