Kogi State Unveils ₦50 Billion Sukuk Bond to Fund International Airport and Market Projects
Governor of Kogi State, Alhaji Ahmed Usman Ododo
The Kogi State Government has announced plans to raise a ₦50 billion Sukuk bond to accelerate the construction of the Kogi State International Airport and the Lokoja International Market. At an investor engagement and market-sensitisation forum held in Abuja on Thursday, 22 January 2026, the state government confirmed that the proposed issuance is strictly asse backed and aligned with its long term development framework. Construction for both landmark projects is scheduled to commence by March 2026.
Representing Governor Ahmed Usman Ododo, the Commissioner for Finance, Budget and Economic Planning, Asiwaju Asiru Idris, stated that the decision to approach the capital market is driven by strategic ambition rather than fiscal distress. The administration intends to leverage the bond to unlock the state's potential as a logistics hub connecting Nigeria's northern and southern regions.
Strategic Allocation of Funds
The ₦50 billion Sukuk, structured as a senior unsecured Ijara Sukuk (a lease to own financial instrument), will be dedicated exclusively to two primary infrastructure projects. The government has secured necessary approvals from the State Executive Council and the House of Assembly, alongside an application for an Irrevocable Standing Payment Order (ISPO) from the Federal Government to enhance investor confidence.
The designated projects include:
Kogi State International Airport: Located in Zariagi, this facility is designed to serve as a cargo and passenger hub. The government aims to facilitate agro-exports and position the state as a central node in Nigeria’s aviation network.
Lokoja International Market: This project seeks to formalise regional trade, improve internally generated revenue (IGR), and provide modern commercial facilities for thousands of small and medium sized enterprises (SMEs).
Fiscal Position and Investor Security
Governor Ododo highlighted that Kogi State's financial standing has been bolstered by its recent recognition as an oil producing state, with 13% derivation revenue beginning in January 2026. This new revenue stream, combined with a "B" rating and stable outlook from Fitch Ratings, is expected to strengthen the state’s debt servicing capacity.
To address security concerns, Commissioner Idris detailed the deployment of surveillance drones and the professionalisation of over 1,050 community vigilantes and hunters. Furthermore, the Sukuk will be subject to multiple layers of oversight, including monitoring by the Securities and Exchange Commission (SEC), a Sharia Advisory Board, and an independent Project Management Committee.
Market Reception and Timeline
Financial experts have reacted positively to the proposal. Kayode Fadahunsi, Managing Director of AVA Capital Group, described the issuance as a "textbook infrastructure Sukuk," noting that the projects are revenue enhancing and capable of self liquidation. While March 2026 remains the target for fund release and construction take off, the government has expressed flexibility, stating that progress remains the priority over rigid calendar dates.
The ₦50 billion Sukuk bond represents a pivotal shift in Kogi State’s infrastructure financing strategy, moving away from conventional debt toward asset-backed investment. By linking the bond directly to the International Airport and the Lokoja Market, the state aims to ensure that the capital is deployed into productive, revenue generating assets. For investors and urban planners, the success of this issuance will serve as a significant benchmark for sub national infrastructure development in Nigeria’s North Central region.
