The Kogi State Government has unveiled plans to raise ₦50 billion through a Sukuk bond aimed at financing the construction of the Kogi State International Airport and the Lokoja International Market, two projects described as transformative and crucial for the state’s economic growth.
Governor Ahmed Ododo made the disclosure during a gathering with investors, Nigerian capital market representatives, fund managers, issuing houses, regulators, and development finance institutions in Abuja.
Through the Commissioner for Finance, Budget, and Economic Planning, Asiwaju Ashiru Idris, the governor emphasized that the move to the capital market is motivated by strategic vision rather than fiscal pressure.
“Permit me to be very specific on the purpose of the proposed ₦50 billion Sukuk bond. The bond is strictly asset-backed and dedicated to financing two transformational infrastructure projects of strategic economic importance to Kogi State—the development of the Kogi State International Airport and the completion of the Lokoja International Market,” he said.
Governor Ododo highlighted that the proposed international airport aims to enhance logistics efficiency, attract private sector investment, promote agro-exports, facilitate business travel, and position Kogi State as a natural hub linking Nigeria’s North, South, East, and West.
He added that the Lokoja International Market, once completed, will act as a major commercial hub, formalizing trade, increasing internally generated revenue, creating thousands of jobs, and boosting urban economic activity.
The governor also stressed that Kogi State follows a 32-year development plan that provides long-term direction, policy continuity, and predictability in capital deployment, guiding budgeting, borrowing, and project execution.
On the bond’s viability, Ododo reaffirmed his administration’s dedication to fiscal discipline and governance reforms, noting that these efforts have been independently validated.
“Kogi State has been assigned a ‘B’ rating with a stable outlook by Fitch Ratings, reflecting improved financial management, a prudent debt posture and a strengthening capacity to meet debt service obligations,” he said.
He further noted that, in addition to internally generated revenue and federal allocations, Kogi State now benefits from 13 per cent derivation revenue as an oil-producing state.
Assuring investors of the projects’ sustainability, the governor said both initiatives are tangible, revenue-generating assets fully compliant with Sukuk principles.
“The proceeds will not be applied to recurrent expenditure, but to infrastructure that expands productivity, stimulates commerce and strengthens the state’s long-term repayment capacity,” he said.
Speaking as part of the advisory team, AVA Capital Group Managing Director Kayode Fadahunsi expressed confidence in the Sukuk, calling it a “textbook infrastructure Sukuk.”
“These are revenue-generating projects that can literally pay themselves down. This is not borrowing for consumption but for assets that will expand Kogi State’s internally generated revenue,” he said.
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.
Distribution will follow a book-building approach to optimize rental rates, with a minimum subscription of ₦5 million.
