Vice President Shettima says the federal government accessed over N625 billion through Sukuk bonds and seeks more partnerships with Saudi Arabia.
- The federal government issued its sixth Sovereign Sukuk bond in 2023 to finance the construction of roads and bridges across the country.
- The bond was oversubscribed by 435 per cent, raising over N625 billion from local and international investors.
- The government is committed to further designing policies targeted at financial deepening and diversification for unlocking private sector financing.
- The government will continue to explore Islamic finance tools such as Sukuk to tap into local and international investments.
- The government will also consider enhancing the visibility of the Islamic finance market in line with global trends and national policy goals.
- President Tinubu visited Saudi Arabia with a team of ministers and businessmen and struck deals and commitments in oil and gas and banking sector, among others.
The federal government of Nigeria has leveraged on Islamic finance to fund its infrastructure projects, especially in the road and bridge sectors. The government issued its sixth Sovereign Sukuk bond in 2023, which was oversubscribed by 435 per cent, raising over N625 billion from local and international investors.
Speaking at the opening of the 6th Africa International Conference on Islamic Finance (AICIF) 2023 with the theme: “Towards a Just Transition” in Abuja, Vice President Kashim Shettima said the government was committed to further designing policies targeted at financial deepening and diversification for unlocking private sector financing.
He said with global assets under management exceeding $2 trillion and the growing demand for alternative sources of financing, Islamic finance remained central to both financial deepening and diversification in the country.
He further stated that the government would continue to explore Islamic finance tools such as Sukuk to tap into local and international investments. He said the government had accessed over N625 billion through its sixth Sovereign Sukuk issuance to finance the construction of roads and bridges across the country.
He said: “This shows an increase in the level of public trust and awareness about the financial product. Non-interest banking and microfinance could also potentially serve as a tool to drive industrialisation, SME growth, and micro-credit activities.”
He added that the government would also consider enhancing the visibility of the Islamic finance market in line with global trends and national policy goals for financial literacy, financial inclusion, and the transition to the formal economy of millions of Nigerians in the near future.
He said: “These interventions are not just geared towards funding sustainable development projects but also to enable the Islamic financial markets to contribute to our journey to a clean and sustainable future for the country.”
He also revealed that President Bola Ahmed Tinubu had visited Saudi Arabia with a team of ministers and businessmen and struck deals and commitments in oil and gas and banking sector, among others.
He said: “As a nation desirous of diversifying our sources of finance, and bringing on board every perspective, I want to assure you all that we have only just begun, and a glorious future lies ahead of us and our partners in development.”
Thisdaylive reported that the vice president also commended the organisers of the conference for choosing a timely and relevant theme, saying that the transition to a low-carbon and climate-resilient economy was imperative for Nigeria and Africa.
In his keynote address, the 14th Emir of Kano, Muhammadu Sanusi II, urged the Shari’ah boards of financial institutions to ensure the fulfillment of the fundamental objectives of Shari’ah, the Maqasid al Shari’ah, in Islamic finance practice.
He said the negative/exclusionary screening done by Shari’ah boards which exclude certain sectors, companies, or practices from funds or portfolios, could be broadened to include not only the Environment, Social and Governance (ESG) criteria, but also positive and impact-creating screening.
He said these objectives include protecting and sustaining faith, life, intellect, progeny, and wealth; pursuance of social justice, facilitating social mobility; attainment of benefit with its categorisation into recognised benefits, classified into necessities, needs and embellishments; and de-recognised benefits, like the benefits accruing from prohibited activities.
