Kogi State Government has unveiled plans to raise ₦50 billion through a Sukuk bond aimed at financing two major infrastructure projects: the Kogi State International Airport in Zariagi and the Lokoja International Market.
The announcement was made by Governor Ododo, represented by Finance Commissioner Asiwaju Ashiru Idris, during a meeting with investors and capital market stakeholders in Abuja.
According to the governor, accessing the capital market is part of a strategic push to secure sustainable funding for transformative projects that drive economic growth.
“The ₦50 billion Sukuk bond is fully asset-backed and dedicated exclusively to these two projects, in full compliance with Sukuk principles,” he said.
Governor Ododo highlighted the economic potential of the projects, noting that the airport will improve logistics, attract investment, support agro-exports, and position Kogi as a regional hub. The Lokoja International Market, he added, will formalise trade, generate revenue, create jobs, and strengthen the local economy.
The governor also reassured investors of the state’s fiscal discipline, pointing out that Kogi has a ‘B’ credit rating with a stable outlook from Fitch Ratings and now benefits from 13 per cent derivation revenue as an oil-producing state. Proceeds from the bond will be strictly applied to infrastructure, not recurrent expenditure.
Supporting the announcement, Mr. Kayode Fadahunsi, Managing Director of AVA Capital Group and member of the advisory team, described the Sukuk as a model infrastructure investment. He noted that the projects are revenue-generating assets capable of servicing the bond.
The Sukuk, structured as a senior Ijara Sukuk, will be offered at ₦1,000 per unit, totaling ₦50 billion, with a maturity of five to seven years. Subscription will follow a book-building process, with a minimum investment of ₦50 million.
With this move, Kogi State aims to unlock new economic opportunities while securing a sustainable path for long-term development.