Nigeria gears up for its first sukuk issue

Feb 23, 2016

The country's authorities are setting up a special committee.

Nigeria's Securities and Exchange Commission has announced the establishment of a committee that will advise the country's authorities on the issuance of Nigeria's first Islamic bond.

The Commission spokesperson, Nalf Abdulsalam, said in a statement that the committee will include representatives of the National Debt Management Office and will be responsible for setting the amount and date of the sukuk. It will also support the regulatory aspects of the operation.

This issue, which is Nigeria's first sovereign sukuk, is expected to be launched before the end of 2016.

In 2013, the country's Osun State had already issued a sukuk. Ten billion naira (€45.9 million) of seven-year sukuk were listed on the Nigerian Stock Exchange, denominated in local currency.

In Nigeria, Islamic finance has a potential market of nearly 80 million unbanked Muslims.

Although the country has the largest Muslim population in sub-Saharan Africa, Islamic financial institutions have only started to develop a few years ago. The first bank specialising in this field, Jaiz Bank, opened in February 2012 in Abuja.ADNFCR-2976-ID-801813144-ADNFCR