Nigeria plans to raise 100 billion Naira from Islamic bonds called Sukuk.

This means that it’s only those who are Muslims that can buy into this bond.

However, Sukuk is not your regular bond as interests will not be paid.

Instead, the money would be invested and Muslims who bought into this bond would become co-owners of whatever business or project the government invested the money in.

This is the first time the federal government is issuing Sukuk as it targets to borrow over 10 billion naira to finance its budget deficit of more than 2 trillion naira.

The Debt Management Office, DMO that announced the Sukuk on Tuesday said the money would be used to fund road projects.

The Islamic bond has a 7-year tenor and will go on sale on June 28 for three days via book building, according to the DMO.

The bond will be tradable on the Nigerian Stock Exchange and on FMDQ over-the-counter platform.

The DMO said the issue was "part of the plan to fast track the development of infrastructure and engage in project-tied capital raising."

The planned sukuk issue will target retail and institutional investors, with First Bank and Islamic wealth manager, Lotus Capital managing the sale.