Skip to main content

Fed Govt plans more Sukuk bonds to fund projects

 

The Federal Government plans to upscale its alternative financing programme by issuing more Sukuk bonds to fund projects, building on the back of huge successes recorded on previous issuances.

It had raised N362.6 billion in three previous issuances which were hugely oversubscribed.

Director-General, Debt Management Office (DMO) Ms Patience Oniha, said the government recognises the need to issue more Sukuk bonds given the increasing success and strong investor’s appetite for the alternative non-interest bonds.

According to her, the Sukuk initiative by DMO, which oversees national debt management, has been successful given the strong level of awareness that has been created.

She attributed the success of the Sukuk issuances to the increased confidence from market participants given that the Sukuk bonds are tied to specific projects that can be tracked.

“Looking ahead, we recognise the need to upscale issuances to include other standalone projects beyond road infrastructure, but more importantly, we are looking to support projects that are revenue generating to service the Sukuk,”  Oniha said.

She added that there must be a focus on growing and diversifying the investor base for the Sukuk as well as other investment products.

Oniha spoke at the third Islamic Finance News (IFN) Nigeria Roadshow 2021 hosted by the Nigerian Exchange (NGX) Limited, in collaboration with REDMoney Group. With the them: Systemic restart: Islamic finance in Nigeria, the forum aimed at promoting the growth and development of the Islamic finance industry within the economy, including facilitating the growth of a new asset class in the industry.

 

Chief Executive Officer, Nigerian Exchange (NGX) Limited, Mr. Temi Popoola   said the Islamic finance sector has continued to grow in Nigeria with increased interests from market participants and a growing number of players including two Islamic banks, four takaful insurance companies and several microfinance banks and managed funds.

He pointed out that fFollowing the issuance of the first Sukuk in Sub-Saharan African, the Osun State N11.4 billion 7-year Ijarah Sukuk in 2013, the increasing demand for ethical investments in Nigeria has further led to three successful Sukuk issuances totalling N362.6 billion by the DMO from 2018 till date, all of which have been listed on NGX.

According to the Islamic Finance Development Report 2020, the Islamic finance industry’s assets grew by 14 per cent in 2019 to $2.88 trillion, returning to its long-term pattern of strong growth after the slowdown in 2018.

Popoola expressed NGX’s commitment to building the Islamic finance asset class, assuring that NGX will continue to provide an efficient and liquid market for investors and businesses in Africa, to save and access Shariah-compliant capital and investments.

“Our collaboration with RedMoney in convening the annual IFN Nigeria forum attests to our belief in the potential and importance of Islamic finance in catalyzing inclusive economic recovery and a more sustainable global economic growth. We will collaborate with all market stakeholders to contribute towards the growth of Islamic finance in Nigeria and Africa at large,” Popoola said

other participants at the forum included Peter Mushangwe, AVP – Analyst, Financial Institutions Group, Moody’s Investors Service; Norfadelizan Abdul Rahman, Managing Director, Taj Bank; Elhadji Ibrahima Thiaw, Country Manager, Senegal, The Islamic Corporation for the Insurance of Investment and Export Credit; Eguarekhide Longe, Managing Director, AIICO Pension Managers Limited; and Rizwan Kanji, Partner, Akin Gump.

 



from Latest Nigeria News, Nigerian Newspapers, Politics https://ift.tt/2R4EwXg
via IFTTT
Labels:

Comments

Post a Comment

We're glad you want to comment, kindly avoid spamming the page, thanks

Popular posts from this blog

The transformation of UNIBEN’s campus

Ekehuan Campus of the University of Benin (UNIBEN) was neglected for many years by successive administrations in the institution. However, the story has changed as the campus has witnessed a transformation, reports IFUNANYA OSAKWE (UNIBEN).   The Ekehuan Campus of the University of Benin was the first campus of the institution in Edo State when it was founded in 1970. From the Ekehuan campus, it moved to Ugbowo Campus, which is the permanent site. As a result of this movement, the Ekehuan Campus, which houses the Mass Communication Department, Fine Art Department, Theatre Arts Department, Early Childhood Education Department and Public Administration Department suffered neglect for many years. The classrooms and hostels were not what they used to be. There were incessant protest over lack of light and water by students in Ekehuan campus. Often the protests were said to have achieved very little result as promises to enhance welfare were unfulfilled. On many occasions, students...
Post a Comment
Read more

Premier League: Aubameyang Bags Brace, Saka On Target As Arsenal Thrash Newcastle

Pierre-Emerick Aubameyang was back to his best as he netted a brace while Bukayo Saka was also on target in a 3-0 win over Newcastle at the Emirates on Monday evening. After a fairly lifeless opening period that the home side dominated, they finally got their rewards when Aubameyang gave them the lead five minutes […] The post Premier League: Aubameyang Bags Brace, Saka On Target As Arsenal Thrash Newcastle appeared first on Complete Sports . source https://www.completesports.com/premier-league-aubameyang-bags-brace-saka-on-target-as-arsenal-thrash-newcastle/
Post a Comment
Read more

Why Presidency Must Return To S/South – Obaseki

Governor Godwin Obaseki of Edo State has called on the Peoples Democratic Party (PDP) to zone its 2023 presidential ticket to the South-South. He made the call while speaking at the weekend in Benin, during a reception in honour of Chief Dan Orbih , who was recently elected National Vice Chairman (South-South) of the PDP. Recall that the South-South under the PDP produced President Goodluck Jonathan who took over the mantle of leadership in 2010, after President Umaru Musa Yar’adua’ s death. Jonathan later contested in 2011 and won and administered the affairs of the country until the 2015 elections. He later contested for re-election in 2015 but lost to, Muhammadu Buhari, of the All Progressives Congress (APC). Speaking at the event, Obaseki said for equity to prevail, the South-South region should be allowed to produce the next president. “Presidency must come back to South-South and you (Orbih) must go round the country to let them know that we can’t be cheated. We expe...
Post a Comment
Read more