The Institute of Islamic Banking and
Finance (IIBF), Bayero University, Kano has tasked the Federal
Government to use Islamic finance “Sukuk” for sustainable economic
development in the country.
Finance (IIBF), Bayero University, Kano has tasked the Federal
Government to use Islamic finance “Sukuk” for sustainable economic
development in the country.
The IIBF Director, Prof. Binta Jibril,
made the call at a one day public lecture on the topic: “The role of
Sukuk in Sustainable Development” in Kano on Wednesday.
made the call at a one day public lecture on the topic: “The role of
Sukuk in Sustainable Development” in Kano on Wednesday.
“Nigeria just recently went out of
recession and now the struggle is for the country to raise enough funds
to finance its developmental activities.
recession and now the struggle is for the country to raise enough funds
to finance its developmental activities.
“From the lecture you can see the
enormous benefits that Sukuk has in raising cheap funds for the
government that are devoid of interest and that are capable of spreading
benefits to all citizens,” she said.
enormous benefits that Sukuk has in raising cheap funds for the
government that are devoid of interest and that are capable of spreading
benefits to all citizens,” she said.
According to her, both the Muslims and non-Muslims countries have utilised the ‘Sukuk’ and have benefited immensely from it.
Also speaking at the forum, a renowned
Islamic Scholar of Banking and Finance, Prof. Monzer Kahf, said that
Sukuk was an alternative to financing government projects.
Islamic Scholar of Banking and Finance, Prof. Monzer Kahf, said that
Sukuk was an alternative to financing government projects.
“Sukuk’ is an old word in Arabic,
‘Shariah basis for earning in finance’ for representation of assets in
negotiable securities such as assignment of a contract, prohibition of
interest, time value of money and debt.
‘Shariah basis for earning in finance’ for representation of assets in
negotiable securities such as assignment of a contract, prohibition of
interest, time value of money and debt.
Kahf said Sukuk was less vulnerable to
corruption, adding that there would always be control mechanism to avoid
fraud in projects.
corruption, adding that there would always be control mechanism to avoid
fraud in projects.
According to him, the Sukuk system is already over due in Nigeria.
“We have issued the first and second
Sukuk, the third is coming. I expect much more in the next coming five
years that Sukuk will be much more accepted by both the Federal and
state governments.”
Sukuk, the third is coming. I expect much more in the next coming five
years that Sukuk will be much more accepted by both the Federal and
state governments.”
He added that there were possibilities for Sukuk to be accepted more than Bonds.
Kahf explained that bond is money to the
government to spend the way it likes, while Sukuk is money meant only
for a particular development.
government to spend the way it likes, while Sukuk is money meant only
for a particular development.
“Sukuk is a kind of self-control on the government,” he said.
The lecture was attended by stakeholders
including officials from the Security and Exchange Commission and JAIZ
Bank as well as students and lecturers.
including officials from the Security and Exchange Commission and JAIZ
Bank as well as students and lecturers.
