The federal government is committed to delving into Islamic finance tools, including Sukuk, to attract both local and international investments.
This declaration was made by Vice President Kashim Shettima during the 6th African International Conference on Islamic Finance (AICIF) held in Abuja.
Shettima, who was represented by Tope Fasua, the Special Adviser to the President on Economic Matters, emphasized the untapped potential of Islamic financing to enhance Nigeria’s economy.
He noted that although the country’s financial sector has not fully embraced Islamic financing, it can drive a more competitive and robust economy.
He said: “We are committed to designing policies targeted at financial deepening and financial diversification for unlocking private sector financing.
“With global assets under management exceeding $2 trillion and the growing demand for alternative sources of financing, Islamic finance is central to both financial deepening and financial diversification in Nigeria.
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“However, Nigeria’s fast-growing Islamic finance assets remain largely insignificant in the over $2 trillion Islamic finance global market, despite Nigeria’s demographic composition and increasing demand for alternative sources of finance such as Islamic finance.
“Hence, we will continue to explore Islamic finance tools such as Sukuk to tap into local and international investments.”
The 14th Emir of Kano, Muhammad Sanusi II, while speaking on the theme of the event, “Towards a Just Transition”, said there was a need to switch to a sustainable, net-zero future.
“Since the industrial revolution, fossil fuels have powered extraordinary growth and development, albeit with huge costs to our climate. As a direct result, we are today in a climate emergency. To avert catastrophe, there is a growing concern to radically switch to a sustainable, net-zero future.
“This transition needs to happen fast, but it also has to happen fairly and inclusively. If done right, the transition offers immense opportunities: a systems change in which all communities, workers, and countries are lifted,” he said.
The convener of the conference, Ummahani Amin, said the gathering was an opportunity to strengthen the community of practice on the promotion and development of Islamic finance in shaping the future of sustainable economic practices.
“Our mission is to establish a sustainable endowment fund focused on supporting educational opportunities for the less privileged,” she said.
