This study examines how challenges associated with Sukuk issuance can be overcome to enhance its effectiveness as a sustainable financing mechanism for constructing quality Trunk A roads in Nigeria. Sukuk, a key instrument of the Islamic Capital Market, is grounded in Shariah principles that prohibit riba and emphasize asset-backed, risk-sharing transactions, offering an ethical alternative to conventional debt. Despite seven sovereign Sukuk issuances totaling over ₦1.1 trillion since 2017, institutional, regulatory, and market constraints limit Sukuk’s full potential. The research adopts a mixed-methods design, collecting primary data from forty purposively selected respondents across key institutions; the Debt Management Office (DMO), Securities and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Jaiz Bank, TAJ Bank, and Alternative Bank because these bodies regulate, supervise, issue, or operationally implement Sukuk and provide authoritative insights. It also uses secondary data from DMO’s 2017–2025 Sukuk issuance records.

Quantitative data were analyzed with descriptive statistics and trend analysis to assess issuance patterns, while qualitative responses were examined using thematic content analysis to identify regulatory, institutional, and market challenges. Findings indicate that Sukuk financing has enhanced road connectivity in corridors funded under the sovereign Sukuk programme, improving transport flow, market access, and local economic activity. However, weak regulatory harmonization, high issuance costs, limited investor awareness, and shallow secondary-market depth hinder scalability. The study recommends a unified regulatory framework, investor education, toll-based revenue models, and measures to improve market liquidity to strengthen Sukuk’s role as a credible, sustainable mechanism for financing Nigeria’s critical road infrastructure.