MONDAYBUSINESS Why Nigerians need to invest in FG’s N100bn Sukuk – Experts
Investment in the Federal Government’s N100 billion Sukuk is a good alternative for many Nigerians who are left behind in the capital market, experts have said.
According to the Director, International Institute of Islamic Banking and Finance (IIIBF), Bayero University Kano, Prof Binta Tijjani Jibril, it is gratifying to note that as Nigeria moves out of recession, it is leveraging on Islamic finance, through the issuance of the N100 billion Sovereign Sukuk targeted at infrastructure development.
This is indeed a groundbreaking economic management strategy, she stated.
Prof Binta spoke with Daily Trust at the closing ceremony of a 3-day intensive training workshop on Islamic finance organised by IIIBF and International Centre for Islamic Culture Education (ICICE) in Abuja at the weekend.
“Look at the N100 billion Sukuk, the unit value is N1000. The minimum amount that you can subscribe is 10 units. Which N10,000. Poor civil servants, brick layers, market women and other poor people can actually subscribe to it,” she noted.
She said the offers gave opportunity for many Nigerians to become stakeholders in the infrastructure development of the country. “And what this will do is that it will make the government more accountable because if people have stakes in a particular project they will want to know what is being done about it at every stage. The Sukuk will provide the government with alternative source of finance which is the cheapest they could get anywhere.
“It will enable government to close its infrastructural gaps, and it will also enable citizens to participate in infrastructural development,” Prof Binta said.
She said given the multifarious financial problems Nigeria is facing at the moment, looking towards Islamic finance has become imperative.
The Managing Director/ Chief Executive Officer of APT Securities and Fund Ltd, Kasimu Garba Kurfi, also said that Sukuk is a good alternative for the fixed asset market. He said Sukuk is a good alternative in the market segment which the investors need to explore.
He said the returns look good and is similar to what bonds offer, which is why it has become the attraction for the institutional investors such as banks and pension funds.