IslamicFinance.de

Nigeria's central bank has set commercial banks' investment in Islamic bonds issued by state governments to 10% of the total amount on offer and fixed a maximum tenor of 10 years for the bonds. The central bank said it considered the need to issue the guidelines to enhance the quality of sukuk instruments and to grant liquidity status at its discount window as well as for banks' liquidity ratio. Nigeria is working out details for issuing a debut sovereign sukuk and also planning to sell Eurobond to raise $1 billion this year. The regulator assigned a weight of 20% for capital adequacy for banks' investment in sukuk and a weight of 50% for Islamic bonds that do not qualify as liquid assets.