By John Alechenu, Abuja
The Kogi State Government has announced plans to issue a ₦50 billion Sukuk bond to finance the construction of a Kogi State International Airport and the Lokoja International Market, two projects described as transformational and critical to the state’s economic development.
Governor Ahmed Ododo disclosed this during a meeting with investors, representatives of the Nigerian capital market, fund managers, issuing houses, regulators and development finance institutions in Abuja.
Speaking through the Commissioner for Finance, Budget and Economic Planning, Asiwaju Ashiru Idris, the governor said the decision to approach the capital market was driven by strategic ambition rather than fiscal distress.
“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.
Ododo explained that the proposed international airport is designed to unlock logistics efficiency, attract private investment, support 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, when completed, would serve as a major commercial nerve centre by formalising trade, boosting internally generated revenue, creating thousands of jobs and strengthening urban economic activity.
The governor stressed that the state operates under a 32-year development plan, which provides long-term direction, policy continuity and predictability in capital deployment, adding that the plan guides its budgeting, borrowing and project execution framework.
On the viability of the bond, Ododo reaffirmed his administration’s commitment to fiscal discipline and governance reforms, noting that these efforts have received independent validation.
“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 also noted that beyond internally generated revenue and federal allocations, Kogi State now benefits from 13 per cent derivation revenue as an oil-producing state.
Assuring investors, the governor said both projects are tangible, revenue-supporting assets fully aligned 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.
Also speaking, a member of the advisory team and Managing Director of AVA Capital Group, Kayode Fadahunsi, expressed confidence in the offer, describing it as 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, structured as a senior unsecured Ijara Sukuk, will be issued at ₦1,000 per unit, with a programme size of ₦50 billion and a tenure of between five and seven years. Distribution will be through book-building to optimise rental rates, with a minimum subscription of ₦5 million.
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