Monday, December 02, 2019 /01.00 PM/ Bukola Akinyele
for Proshare WebTV / Header Image Credit: Proshare WebTV
The prospects for Nigeria's economic growth hinges on infrastructure and in a recent discussion with Mr. Ahmed Choudry, Counsel, Clifford Chance LLP, Dubai, United Arab Emirates, he noted that Islamic Finance provides a fresh source of funding.
With the advent of the Federal Government of Nigeria Sukuk Bond issuance (2017 and 2018), there has been a wave of interest in Islamic Finance in Nigeria and across the African continent.
According to Mr. Choudry, Nigeria can benefit immensely from deep capital for financing infrastructure, through Sukuks.
"Nigeria can leverage the pool of funds in the global non-interest finance market to fund critical projects that could have a large impact on Nigeria's economy" Choudry said.
He noted that the well-received issue of the 2017 and 2018 Federal Government Sukuk Bonds demonstrated the large opportunity for infrastructure funding in the country.
Speaking further, he said Nigeria and African governments had prioritized Sukuks for infrastructure, to unlock their economies and stimulate socio-economic growth.
Choudry described Islamic Finance as a robust Ethical and Alternative financing option that nations can tap into to finance development projects.
He called for an enabling environment in Nigeria that encourages a robust regulatory and legal framework for Islamic Finance.
Looking at the Nigerian economy, he called for respect for the sanctity of contracts, to attract larger amounts of investments like the Sukuks.