The Kogi State Government has announced plans to raise N50 billion through a sukuk issuance to finance the construction of an international airport and a modern international market, with the programme expected to commence by March 2026.
The disclosure was made by Governor Ahmed Ododo at an investor engagement and market sensitisation forum held in Abuja, according to the News Agency of Nigeria (NAN).
According to the state government, the planned sukuk will serve as the administration’s flagship infrastructure financing strategy, designed to accelerate economic transformation, unlock Kogi’s strategic location, and boost internally generated revenue.
Infrastructure-focused sukuk
State officials explained that the sukuk will be fully asset-backed and deployed strictly for infrastructure development, in line with Islamic finance principles. The proceeds will be applied exclusively to the Kogi State International Airport project and the Lokoja International Market, both of which are expected to be revenue-generating assets.
Speaking at the forum, the Commissioner for Finance, Budget and Economic Planning, Mr Asiru Idris, stressed that the financing plan is infrastructure-driven and consumption-free.
“This N50 billion sukuk is for infrastructure, not consumption. Today, we are presenting a clear and transparent investment proposition. It is specifically for the Kogi State International Airport and the Lokoja International Market,” Idris said.
Also speaking, the Managing Director of AVA Capital Group, Mr Kayode Fadahunsi, described the planned issuance as a textbook infrastructure sukuk, noting that the projects are capable of paying for themselves over time.
According to him, the airport and market developments can expand Kogi State’s internally generated revenue base while supporting sukuk repayments through project-linked cash flows.
Economic context
Kogi State has historically faced challenges in developing large-scale infrastructure, despite its strategic position linking northern and southern Nigeria. Successive administrations have identified transport, logistics, and commercial infrastructure as critical to unlocking the state’s economic potential and attracting private investment.
The state government believes that the proposed airport and international market will strengthen trade, logistics, and investment flows, positioning Kogi as a key commercial hub in the country.
What you should know
State officials disclosed that all key institutional approvals required for the sukuk issuance have already been secured. These include approvals from the Kogi State Executive Council and the Kogi State House of Assembly.
To further strengthen investor confidence, the state has submitted an application for an Irrevocable Standing Payment Order (ISPO) to the Federal Government. The bidding process for the airport project is also expected to commence within weeks.
In addition, financial advisers, technical consultants, and project partners have already been engaged to ensure effective execution and value-for-money delivery. A Sharia Advisory Board and an Independent Project Management Committee will also be constituted to oversee compliance, governance, and transparency throughout the life of the sukuk.
At the national level, the Debt Management Office (DMO) recently disclosed that the Federal Government has recorded N2.205 trillion in total subscriptions through the Sovereign Sukuk programme since its debut in 2017.
Earlier, in May 2025, the DMO announced the issuance of a N300 billion seven-year Ijarah Sukuk, targeted at funding critical road and bridge infrastructure across Nigeria’s six geopolitical zones, underscoring the growing role of sukuk instruments in public infrastructure financing.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
