As the pressure on federal revenue mounts following steady
decline in oil revenue, the Federal Government would be resorting to a Sukuk
Bond for funding the widening budget deficit, Vanguard reports. Sukuk is a financial certificate, similar to the traditional
government bond, but complies with Sharia, Islamic religious law.
decline in oil revenue, the Federal Government would be resorting to a Sukuk
Bond for funding the widening budget deficit, Vanguard reports. Sukuk is a financial certificate, similar to the traditional
government bond, but complies with Sharia, Islamic religious law.
The Debt Management Office, DMO, and Securities and Exchange
Commission, SEC, are collaborating in an effort to issue the Nigerian sovereign
Islamic bonds this year.
Commission, SEC, are collaborating in an effort to issue the Nigerian sovereign
Islamic bonds this year.
Details of the expected revenue from the bond is not yet
disclosed but officials said they expect significant bridging of the 2016
budget deficit which has exceeded the initial N2.2 trillion estimate.
disclosed but officials said they expect significant bridging of the 2016
budget deficit which has exceeded the initial N2.2 trillion estimate.
According to DMO “issuing a sovereign Sukuk will attract
significant amounts of affordable capital from the Gulf countries and other
established Islamic markets around the world into Nigeria.”
significant amounts of affordable capital from the Gulf countries and other
established Islamic markets around the world into Nigeria.”
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