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FG stokes controversy with Islamic bond proposed for 2017

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Islamic bond

Federal Government’s planned introduction of first Islamic bond in the domestic market, through the Debt Management Office (DMO), has received negative reviews from the Christian community.

According to the DMO, government has perfected plans to see to the implementation of the financial instrument, popularly known as “Sovereign Sukuk” as part of the programmes aimed at raising needed funds for the 2017 budget.

Expectations from the Office is that given the support other countries have drawn from the Islamic-driven instrument, Nigeria will rake in about $1 billion from the sale of the bond in its market.

It would be recalled that the country is already on the verge of having its $2 billion Eurobond executed when it goes on sale also in January 2017.

However, some interest groups, especially from the Christian fold, have already expressed reservations with the planned introduction of a religiously-biased economic measure to solve Nigeria’s recession, though the official size of the deal is yet to be finally determined.

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A spokesman of the Christian Association of Nigeria, North Central Zone. Joseph Odeh condemned the measure, saying that it would distort the stability which the financial sector has been enjoying.

He said, “Nigerians are still recovering from the shocking news that the CBN Governor (Godwin) Emefiele had been elected the chairman of Islamic banking institute, and to hear that Islamic bond will be introduced into the system also is to overstretch the patience of many.”

But a senior government official said the plan is still in progress with only a committee set up to advise the relevant authorities on the workability of the programme.

He added that the bond is part of a plan by the government to have alternative sources of funding the budget in readiness for any disappointment from known credit institutions where loan facilities are anticipated.

The CBN had in October 2017 issued guidelines limiting commercial banks’ investment in Islamic bonds, when some northern regional governors opted for the bond, thereby limiting patronage by only 10 per cent for a 10-year maximum period.

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0 Comments

  1. Roland Uchendu Pele

    December 22, 2016 at 5:45 pm

    Christians must understand that this is not a matter of religion. This is strictly finance, and we gotta come out of this hardship irrespective of HOW!

  2. Animashaun Ayodeji

    December 22, 2016 at 8:25 pm

    When money and economic improvements are involved, we don’t have to make everything seem like religious sentiment. This is money we are talking about

    • yanju omotodun

      December 23, 2016 at 5:00 am

      You are correct. Islamic banking to me should be welcomed with all enthusiasm by Nigerians irrespective of our religions . a bank where you have no cause to regret , I am going to bank with them

  3. chichi emerue

    December 23, 2016 at 2:36 am

    Thank God we now have trump to save us from this stupid plan of buhari who wants to turn this country to a Muslim country

    • Amarachi Okoye

      December 23, 2016 at 2:41 am

      Buhari can never turn this country to a Muslim because the God of Christians still exist and will always fight for his childrens no matter what buhari and his fellow cabinets has plan

  4. JOHNSON PETER

    December 23, 2016 at 4:57 am

    This is pure politics of religion. Soon they will islamize Nigeria if care is not taken.

  5. seyi jelili

    December 23, 2016 at 5:06 am

    Let us be frank with ourselves. Christianity claims too much sacrilege but without no truthful virtues. Most banks in Nigeria are owned by the Christians but we all see the way they exploit us. Bank will charge you for ATM card maintenance whereas the ATM card is being maintained by us, so many useless charges and here islamic banking has no charges accrued to it except for much interest. Let’s not beclouded with religious sentiments , let’s accept what is good.

    • Balarabe musa

      December 23, 2016 at 5:09 am

      Gbam. You are an impartial Christian. Islamic banking is not in any way a means to islamise Nigeria, so we have no cause to fear.

  6. Emmanuel Alayegbami

    December 23, 2016 at 5:12 am

    Let we Christians be reasonable. There is no president no matter how tough he is, that can turn Nigeria to a monotheism (that’s , Islamic country). Nigeria is a multi ethnic society. So no one should be fooled to react to Islamic banking.

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