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Why Nigerians Should Invest In SUKUK – CBN

central bank of nigeria

The Central Bank of Nigeria (CBN) has urged Nigerians to take advantage of the introduction of sovereign SUKUK offer by the federal government, saying it is geared towards infrastructural development and worthwhile investment.

Speaking at a one-day investors’ forum organised by the Debt Management Office (DMO) in Kaduna on Thursday, CBN’s deputy director of Financial Markets Department, Mr. Demenongu Yanfa, assured participants at the forum of the apex bank’s commitment to the smooth running of SUKUK.

According to Yanfa: “The world is looking for new areas of investment. As of today, South Africa, Malaysia and some other countries of the world have embraced SUKUK to fund some of the construction and rehabilitation of key sectors of their economies.”

Director General of DMO, Ms. Patience Oniha, had this to say: “N100 billion is proposed to be raised by Federal Government under the SUKUK programme through investors’ participation. The funds shall be used for the construction and rehabilitation of sections of key economic roads across the six geopolitical zones of Nigeria.”

“The SUKUK is sharia compliant as a non-interest security which has been approved by the Financial Regulatory Advisory Council of Experts of the Central Bank. With SUKUK, we can improve our road infrastructure and this will contribute to the improvement of economic activities across board.

“We have taken it upon ourselves to continue educating the public about the SUKUK and the Roadshow started in Lagos before moving to Port-Harcourt, Kano, Abuja and we are now in Kaduna to create awareness about the investment opportunity.”

The Islamic Financial Services Board defines sukuk as. “certificates with each sakk representing a proportional undivided ownership right in tangible assets, or a pool of predominantly tangible assets, or a business venture.