The amount paid on rentals for Sukuk bonds has risen from N8.17bn in the first quarter of 2022 to N33.13bn by the second quarter.

This was a 305.51 per cent increase, according to an analysis of the Federal Government’s domestic debt service report for each quarter by the Debt Management Office.

Sukuk is a sharia-compliant bond-like instrument used in Islamic finance.

When an investor purchases Sukuk bonds, the Federal Government gives them a certificate of ownership.

The money is invested in assets across the country, with the investor having a partial ownership.

The Federal Government also makes a contract-binding promise to buy back the bond at a specific future date, and the investors receive respective rental income on their investments.