ISLAMIC FINANCE VITAL TO NIGERIA’S INFRASTRUCTURE DEVT – SANUSI

Nigeria and other African countries need to tap into opportunities provided by Islamic financing to fund infrastructure development on the continent, the governor of the Central Bank of Nigeria has said.

Sanusi Lamido Sanusi stated this yesterday in Abuja at a conference on “Infrastructure Development through Alternative Funding (Islamic Finance) in Africa”.

The event was organised by The Metropolitan Skills Limited, Abuja, in collaboration with the Islamic Finance Institute of Southern Africa.

He was represented by his special adviser on non-interest banking, Dr Bashir Aliyu Umar.

He said Islamic bonds called Sukuk, if well developed, could serve as a financing option for governments as is already evident in countries like Saudi Arabia and United Arab Emirates.

“It is my belief that, if properly structured, it will complement government’s efforts in infrastructure development,” Sanusi said.

Professor Monzer Kahf, MSC coordinator, Islamic Finance, Faculty of Islamic Studies, Quatar, who was also a guest speaker, described Islamic Finance as a depository institution of financial intermediary specialised in providing finance on sale, lease or sharing bases. It is committed to the Islamic Shari’ah criteria of financial transactions especially realism, morality as well as prohibition of interest, he noted.

Kahf, who also lamented the way Islamic banking is being misinterpreted in some quarters, revealed that the bank does not put any restrictions on one’s faith or belief  but rather grants an equal opportunity and operates under the principles of fairness, realism and morality.

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 funds “cannot be diverted”.

Source: Leadership