Sukuk Explained: The Halal Alternative to Bonds
20 January 2026 · by oneHalal
A conventional bond is a loan: you lend money to a government or company, and they pay you interest until they repay the principal. That interest payment is riba, which makes conventional bonds impermissible regardless of who issues them.
A Sukuk works differently. Instead of lending money, you buy a share of ownership in a real, tangible asset — a toll road, a power plant, a fleet of aircraft, or in the case of the FGN Sukuk, federal road infrastructure. You then earn a share of the rental income or profit that asset generates.
This is more than a technicality. Because your return is tied to a real asset's performance rather than a fixed interest rate on a loan, Sukuk carry a different risk profile — and a genuine Islamic finance scholar board has to certify the structure before it can be issued.
On oneHalal, you can invest in Federal Government Sukuk, state government Sukuk, and corporate Sukuk. Minimum investment starts at ₦500.
Sukuk are generally lower-risk and lower-volatility than equities, making them a good anchor for the fixed-income portion of a Halal portfolio.