The Committee on Capital Markets and Institutions of the Nigerian Senate has scheduled September 29 to 30, 2025 for a national stakeholders summit on Municipal Bonds and Sukuk for Local Government Infrastructural Development in Uyo, Akwa Ibon State, in partnership with the Securities and Exchange Commission (SEC).
The summit themed: “$1 Trillion Nigerian Economy: Infrastructure Financing through the Capital Market,” according to a statement will bring together key players from government, regulators, investors, and the private sector to explore how municipal bonds and Sukuk can unlock new funding for roads, healthcare, housing, water, education, and transport at the local government level.
The summit’s primary goal is to explore how Nigeria can build a robust municipal bond and Sukuk market to support local government infrastructure.
These instruments, Senator Osita Izunaso, Chairman, Senate Committee on Capital Market and Institutions, was quoted as saying, the instruments offer sustainable, market-based alternatives to traditional funding and have been successfully deployed globally.
Empowering local governments through the capital market, he noted, will reduce reliance on federal allocations, promote fiscal independence, create jobs, and accelerate Nigeria’s progress toward a $1tr economy.
Also, Director General of the Securities and Exchange Commission, Dr. Emomotimi Agama added that Nigeria’s infrastructure gap demands capital market solutions like bonds and Sukuk which provide long-term funding with stable investor returns.
Continuing, he said “infrastructural gap in Nigeria can be met effectively through Capital Market Funding adding that the summit is one of the ways to create awareness for stakeholders on some of the benefits of municipal bonds and sukuk among others.”
Bonds, according to the SEC DG, are essentially long-term debt instruments in any structured economy geared primarily to guarantee access to potential resources for the government or company’s infrastructure/developmental purposes and also provide an outlet for investors to enjoy stable returns.
The Nigerian bond market, he stressed, has become more popular, judging by how it is being embraced by governments and corporate institutions to raise funds for crucial projects and business expansion/working capital requirements respectively.
“In view of the paucity of revenue to finance necessary developmental infrastructure and services in the country in recent times, the government at all levels need to take advantage of the opportunity available in the capital market through the issuance of bonds to access funds for developmental purposes” he stated.
By gathering key stakeholders from the public and private sectors, the summit, the organisers say, aim to: Educate stakeholders about the benefits and potential of municipal bonds and Sukuk as effective financing tools for local governments: Identify and address challenges faced by local governments in accessing capital markets for infrastructure financing.
The event also seeks to create a comprehensive strategy for developing a well-functioning municipal bond and Sukuk market in Nigeria that is adaptable to the country’s local government framework and Promote collaboration among government agencies, financial institutions, investors, and other market participants. This will help to create a sustainable financing ecosystem for local governments and provide actionable policy recommendations and regulatory reforms that would enable and facilitate the issuance of municipal bonds and sukuk by local government.
