IslamicFinance.de

The Governor of Osun State in Nigeria, Rauf Aregbesola, introduced Sukuk Bond to fasttrack the state’s economic development. According to the issuing houses, Governor Aregbesola’s sukuk initiative was said to be the first Islamic bond in sub-Saharan Africa. Though the governor knows that Sukuk is Islamic in nomenclature, the Sukuk bond is a conventional bond and coordinated by the regular investors in the nation’s capital and money market. The N14. 4 billion sukuk (14. 75 percent) fixed return tranche 2 has 42 investors with Lotus Capital Limited as the leading issuing house and Augusto and co as the rating agent. The bond, which is being used to finance roads and school constructions across the state, is due in 2020.

Most critics of Sanusi start with the idea that the Nigerian Central Bank had over-reached its mandate. Although they are probably right, his activities must be applauded in a country where institutional failure has reached epic proportions. Sanusi has been a clear promoter of industrial policy for many years. His passion for tackling the oil sector corruption started on day one of his job. In parse ing through the bad debts that had been run up by the banks, he saw the cancer of the fuel subsidy racket. He didn’t flinch in taking on the banks, he didn’t flinch in taking on the fuel subsidy cabal, he didn’t flinch in taking on the power cabal, he didn’t flinch in taking on the NNPC. Is he a one-man anti-corruption agency – of course not. But if not him, then who? Nigeria is about to find out.