The Kogi State Government has announced plans to raise a ₦50 billion Sukuk bond to speed up the construction of the Kogi State International Airport and the Lokoja International Market, with March 2026 set as the target for the start of construction.
The plan was unveiled at an investor engagement and market-sensitisation forum held in Abuja on Thursday, where the state government assured investors that the proposed Sukuk is asset-backed, focused strictly on infrastructure, and aligned with Kogi’s 32-year development plan.
Speaking after the forum, the Commissioner for Finance, Budget and Economic Planning, Asiru Idris, said the bond programme was structured to help the state deliver major infrastructure faster while creating long-term economic value.
“We are here to present how we intend to raise the ₦50 billion Sukuk for the Kogi State International Airport and the Lokoja International Market. It is fully captured in the budget, and the governor has given us a clear timeline,” Idris said.
He explained that although March remains the preferred take-off date, the government is determined to avoid unnecessary delays. “March is our target. If it slips to April, it is not a failure, but June is too far for us. We want visible progress, particularly on the airport,” he added.
On security concerns, Idris acknowledged that Kogi’s location, bordered by nine states, presents challenges, but he assured investors that measures are in place to protect lives, assets and investments.
“Investments in Kogi will be safe. The governor understands that security is fundamental to investment and development,” he said.
The Managing Director of AVA Capital Group, Kayode Fadahunsi, described the proposed Sukuk issuance as a “laudable and textbook infrastructure Sukuk,” noting that the projects are revenue-enhancing and capable of boosting the state’s internally generated revenue.
“These are the kind of transactions we like because they are tied to productive assets. Monitoring will be carried out by the Securities and Exchange Commission (SEC), alongside other layers of oversight,” Fadahunsi said.
In a keynote address to investors and capital market stakeholders, read on his behalf by the Commissioner for Finance, Governor Ahmed Usman Ododo said the state was approaching the capital market “not out of fiscal distress but out of strategic ambition.”
“This engagement is about trust, transparency, creditworthiness and long-term value creation. We are presenting Kogi State as a credible, disciplined and investment-ready sub-national,” the governor said.
Ododo disclosed that the state operates a 32-year development plan designed to ensure policy continuity and predictability in capital deployment. He added that Kogi’s fiscal discipline and governance reforms have been assessed by Fitch Ratings, which assigned the state a ‘B’ rating with a stable outlook.
According to the governor, strict expenditure controls, transparent procurement processes and biometric verification have eliminated over 2,000 ghost workers, while salary obligations are met on or before the 25th of every month.
He also revealed that Kogi began receiving 13 per cent derivation revenue in January 2026 following its recognition as an oil-producing state, a development he said has strengthened the state’s revenue base and debt-servicing capacity.
Ododo stated that proceeds from the ₦50 billion Sukuk will be dedicated exclusively to two asset-backed projects, the Kogi State International Airport and the Lokoja International Market.
“The airport is a catalytic project designed to unlock logistics efficiency, attract private investment and position Kogi as a natural hub linking Nigeria’s North, South, East and West,” he said, adding that the international market would help formalise trade, expand revenue streams and create thousands of jobs.
Addressing investor concerns, the governor said the state has upgraded its security architecture through surveillance drones, community policing, training of hunters across local governments, and the establishment of forward operation bases and quick response units.
“These measures have significantly improved safety along key transport corridors, including the Lokoja–Abuja and Lokoja–Okene highways,” he said.
Market operators at the forum expressed optimism that, if documentation and regulatory processes move forward as planned, the Sukuk could reach the market within months, placing Kogi among ambitious sub-national issuers in Nigeria’s capital market.
“We are not selling hope; we are offering fundamentals—assets, revenue, discipline and delivery,” the governor assured investors. Investors said the engagement improved confidence and provided clearer insight into project structure, timelines, and expected returns.
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