More structured projects to help Nigeria benefit from Sukuk —InfraCredit

With a good record of issuing over three Sukuk instruments since 2017, Nigeria will benefit more in socio-economic development with more structured projects.

The Chief Executive Officer (CEO), InfraCredit Nigeria, Mr Chinua Azubike, made this point while providing his perspective on ‘Sukuk as a promoter of green and brownfield projects’.

At a WebTV webinar monitored in Lagos, Azubike believed Sukuk needs to be simplified as much as possible to attract more retail investors in the market and broaden its scope across the nation, contributing to economic development.

He said the Sukuk product is not for an exclusive club and called for more sensitisation to enable the instrument to be accessible to more citizens in the country.

The InfraCredit CEO also pointed out that Sukuk is not a religious content but a sustainable finance instrument that is transparent, project-tied and well-structured in terms of funding.

In terms of impact finance, he classified Sukuk as the right instrument to address critical issues like the high poverty rate and energy deficit in Nigeria.

“Infracredit is aiming at how to diversify Sukuk as a more inclusive product, not only based on real estate projects or road rehabilitation. We are looking at financing other forms of infrastructure that have a socio-economic impact on the citizens,” he added.

Beyond Infrastructure, he called for the use of the Sukuk instrument to transform Nigeria’s ailing healthcare system, explaining further that InfraCredit guarantees infrastructure financing that enables financing from the capital market and attracts investments from pension funds.

He listed other projects that could be structured for Sukuk funding to include; provision of energy access to underserved and unserved communities; providing the enabling infrastructure for mobile network service in rural areas; and providing access to cold storage for agriculture products.

Azubike called on stakeholders in the industry like the Islamic Development Bank (IsDB) and other non-interest finance institutions to prioritise technical assistance in ensuring that the correct type of business and financial models are in place. The models should cover environmental, social, and governance (ESG) frameworks to attract more Sukuk funding.

He also stressed the need to shorten the process of issuing Sukuk to make it more attractive and competitive in the market as a veritable tool for sustainable finance in the country and region.

Azubike believed that Islamic Finance provided immense opportunities to bridge the infrastructure deficit in Nigeria, estimated at $100 billion annually.

He gave his projection for the non-interest finance market in 2022. He said there is a deficit for financing in the country, while the pension commission introduced ‘Fund VI’,  which allows for asset investment.

He called on all the key stakeholders such as the advisers, shariah board, and the intermediaries within the industry to work in a coordinated way that would boost activities in the market.

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

FALSE! Yoruba Not An Official Language In Brazil

Claim: A national newspaper and multiple online platforms claim Brazil has adopted Yoruba as its official language and that the language would be included in primary and secondary schools curriculum.

Verdict: The claim is false. The content of the article published by these online platforms is not new; it has been recirculated several times and has been debunked.

Viral Voice Note On WhatsApp Billing False

Claim: A viral WhatsApp voice note, purportedly made by the director and CEO of WhatsApp, claims users will have to start paying for WhatsApp services.

Verdict: The viral WhatsApp voice note claim is a hoax. The content is not new and has been circulated as a broadcast message several times in the past.

Marburg Virus: What You Need To Know About Disease Recently Detected In West Africa

On Monday, August 9, 2021, the World Health Organisation (WHO) confirmed the first case of Marburg virus in West Africa in Guinea. This development has sent shivers down the spines of West Africans who are still grappling with the effects of the coronavirus pandemic. But before this dreaded disease is greeted by rumours and misinformation, here is what you have to know about the virus.

FACT CHECK: US Did Not Give Nigeria 48 Hours Ultimatum To Detain Abba Kyari

CLAIM: Several social media posts claim the United States of America (USA) gave Nigeria’s Federal Government 48 hours to detain suspended Deputy Police Commissioner, Abba Kyari, or face severe sanctions.

VERDICT: The claim is false and misleading. The US did not give Nigerian Federal Government 48 hours ultimatum to detain Abba Kyari.

You might also like
Comments

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More