IslamicFinance.de

#Nigeria's Federal Government successfully concluded the issuance of N100billion sukuk on Friday, but the issuance has divided the country along religious lines. The Christian Association of Nigeria (CAN) described the issuance as a subtle attempt by the Federal Government to Islamise Nigeria. Therefore, the body called on the government to abrogate the laws and framework behind the sukuk. But in its reaction, the Nigerian Supreme Council for Islamic Affairs (NSCIA), accused CAN of Islamophobia. NSCIA then appealed to CAN to tread the path of honour and refrain from statements causing disaffection and promoting disharmony that may lead to conflict in the country. According to Dr. Benedict Nwafor of the University of Lagos, for Nigeria sukuk is an opportunity for raising funds without raising the nation’s debt profile. Nwafor is of view that sukuk certificates can transfer state-owned projects to sukuk holders in case of default. He added that the government has to sort out clearly the scenario for a default and needs to educate the public on the benefits of sukuk.

#Nigeria announced the issuance of N100billion ($328million) sukuk, which brings to close a process that started last year. The first sign of the process was given last year by Alhaji Mahmoud Isa-Dutse, Permanent Secretary at the Ministry of Finance. He said that sukuk could be linked to a wide range of projects from power plants to railways. The sukuk is a 7-year tenor debt instrument which will go on sale from June 28, 2017, for three days via book building. It will be traded on the Nigerian Stock Exchange (NSE) and the FMDQ Securities Exchange OTC platform. Dr. Abraham Nwakwo, Director General of the Debt Management Office, said the sukuk was part of the plan to fast track the development of infrastructure and engage in project-tied capital raising.

The fast growing Islamic insurance package, Takaful, is not exclusively meant for Muslims, as it has been designed to cater for the needs of non-Muslims as well. This clarification was made by the founder of Takaful Insurance of Africa, Mr Hassan Bashir, who disclosed that the Kenya-based company’s products could bring fruitful possibilities to the doorsteps of non-Muslims as well as, not just for people of the Muslim faith. Bashir made this known at a recent chat with the media where he also revealed that non-Muslims currently constituted about 15 per cent of the company’s customer base, adding that the figure was expected to increase as time passed.