Nigeria prepares to issue first domestic sukuk

Dec 22, 2016

Islamic finance could benefit from an 80 million-strong untapped market of unbanked Muslims.

Nigeria is looking to hire firms specialising in financial and legal advice as well as trusts for issuing its first domestic sukuk, Ecofin agency reports.

According to the Nigerian Debt Management Office, the issuance of this Islamic bond - whose amount is not yet known - will help diversify the sources of financing the country's budget deficit.

Nigeria's Osun State issued the country's first Islamic bond in 2013. Ten billion naira (€30.4 million) of seven-year sukuks
were listed on the Nigerian Stock Exchange, denominated in local currency.

Islamic finance in Nigeria could benefit from an 80 million-strong untapped market of Muslims without access to finance.

Even though the country counts the largest Muslim population in sub-Saharan Africa, Islamic finance institutions have been slow to develop. The first bank specialised in the field, Jaiz Bank, opened its doors in February 2012 in Abuja.ADNFCR-2976-ID-801830346-ADNFCR