Kogi govt floats ₦50b bond for airport, market projects

Kogi State Government has announced plans to raise ₦50 billion through a Sukuk bond to finance the construction of the Kogi State International Airport, Zariagi, and the Lokoja International Market.

Governor Ododo, represented by the Commissioner for Finance, Asiwaju Ashiru Idris, disclosed this at a meeting with investors and capital market stakeholders in Abuja.

The governor stated that the decision to access the capital market was informed by the administration’s strategic ambition to secure sustainable funding for critical infrastructure projects.

“The ₦50 billion Sukuk bond is strictly asset-backed and dedicated exclusively to financing the two projects in full compliance with Sukuk principles”.

Governor Ododo explained that the proposed international airport will boost logistics, attract investment, support agro-exports, and position Kogi as a key hub, while the Lokoja International Market will formalise trade, increase revenue, create jobs, and strengthen the local economy.

He further reaffirmed the administration’s commitment to fiscal discipline and governance reforms, noting that Kogi State has been assigned a ‘B’ credit rating with a stable outlook by Fitch Ratings and now benefits from 13 per cent derivation revenue as an oil-producing state.

The governor assured investors that proceeds from the bond will not be applied to recurrent expenditure but will be deployed solely to infrastructure projects that expand productivity, stimulate commerce, and strengthen the state’s long-term repayment capacity.

Also speaking, the Managing Director of AVA Capital Group and 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, will be offered at ₦1,000 per unit, with a total size of ₦50 billion and a maturity period of five to seven years, adding that subscription will be via book-building with a minimum investment of ₦50 million.