The Kogi State Government has announced plans to raise ₦50 billion through a Sukuk bond to finance the construction of a Kogi State International Airport and the completion of the Lokoja International Market.
Governor Ahmed Ododo disclosed the plan during a meeting with investors, capital market operators, 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 access the capital market was driven by long-term strategic goals, not fiscal pressure. He explained that the proposed Sukuk is fully asset-backed and dedicated solely to the two infrastructure projects.
According to Ododo, the planned international airport is expected to enhance logistics efficiency, attract private investment, support agro-exports, ease business travel and position Kogi State as a central hub connecting Nigeria’s North, South, East and West. He added that the Lokoja International Market, once completed, would serve as a major commercial centre, formalising trade, boosting internally generated revenue, creating jobs and strengthening urban economic activity.
The governor said the projects align with the state’s 32-year development plan, which provides policy continuity and guides budgeting, borrowing and project execution.
On the state’s creditworthiness, Ododo reaffirmed his administration’s commitment to fiscal discipline and governance reforms, noting that Kogi State recently received a ‘B’ credit rating with a stable outlook from Fitch Ratings. He said the rating reflects improved financial management, a prudent debt profile and a stronger capacity to meet debt obligations.
Ododo also noted that, in addition to internally generated revenue and federal allocations, Kogi now benefits from 13 per cent derivation revenue as an oil-producing state.
Assuring investors, he said proceeds from the Sukuk would be applied strictly to revenue-supporting infrastructure in line with Sukuk principles, rather than recurrent expenditure.
“These projects expand productivity, stimulate commerce and strengthen the state’s long-term repayment capacity,” he said.
Also speaking, Managing Director of AVA Capital Group and a member of the advisory team, Kayode Fadahunsi, described the proposed issuance as a “textbook infrastructure Sukuk,” adding that the projects are capable of generating sufficient revenue to service the bond.
“This is not borrowing for consumption, but for assets that will expand Kogi State’s internally generated revenue,” he said.Kogi Plans ₦50bn Sukuk to Fund Airport, Lokoja Market
