Africa Needs Islamic Financing to Fund Infrastructure
Nigeria and other African countries need to tap into opportunities provided by Islamic financing to fund infrastructure on the continent, Governor of Central Bank of Nigeria, Sanusi Lamido Sanusi, has said.
The CBN governor said this yesterday in Abuja at a conference on infrastructure development through Alternative Funding (Islamic finance) in Africa.
The event was organized by the Metropolitan Skills Limited, Abuja in collaboration with the Islamic Finance Institute of South Africa.
Sanusi who was represented by his Special Adviser on Non-Interest Banking, Dr. Bashir Aliyu Umar, said Islamic bonds called Sukuk, if well developed can serve as a financing option for governments as is already evidenced in countries like Saudi Arabia, United Arab Emirates and others.
"It is my belief that if properly structured, Islamic bond will compliment government's efforts in infrastructure development," Sanusi said.
Also at the event, former Managing Director of Jaiz Bank, Mustapha Bintube, said Islamic banking has come to stay in Nigeria.
"In Nigeria, many people told me it was not possible but today, with a modest beginning, it is going to stay and it is going to make impact in the economy of this country," he said.
The acting Managing Director of Jaiz Bank, Usman Hassan, urged the federal government to conclude the development of the framework for the issuance of Sukuk in the country.
This is necessary because with Sukuk you cannot have failed projects and "cannot be diverted.