Experts urge larger Sukuk issuances to boost infrastructure funding
CFG Africa and other stakeholders in Nigeria’s non-interest finance sector are advocating for bigger and more frequent Sukuk issuances to deepen the market and support infrastructure development. Babajide Lawani, Managing Director of CFG Africa, emphasized the need for ethical and faith-based investment products. Dr Basheer Oshodi highlighted strong demand for Sukuk and called for quarterly issuances. The sector believes that expanding Sukuk offerings and leveraging technology can drive financial inclusion and economic growth.
TLDR
- Babajide Lawani stated that CFG Africa is focused on developing non-interest products to meet ethical investment preferences and expand market participation.
- Dr Basheer Oshodi noted that the last 10-year Ijarah Sukuk was oversubscribed by about 735 per cent, showing strong investor appetite.
- He recommended issuing Sukuk at least quarterly and increasing the size to meet demand and improve market liquidity.
- Dr Ameenah Adebayo-Shittu clarified the difference between ethical and Shariah-compliant investments, stressing the profitability and discipline of non-interest finance.
- The PUNCH earlier in May 2025 reported that Series VII of the Sovereign Sukuk of the Federal Government saw an oversubscription of 735 per cent, with over N2.21tn in subscriptions against an offer of N300bn.
