We’ll tap into $2trn Islamic finance market – FG

The federal government has said it will continue to explore Islamic finance tools such as Sukuk to tap into local and international investments.

Vice President Kashim Shettima said this yesterday in Abuja at the 6th African International Conference on Islamic Finance (AICIF).

Shettima, represented by the Special Adviser to the President on Economic Matters, Tope Fasua, said despite the huge potential of Islamic financing to drive a more competitive economy, Nigeria’s finance sector is lagging behind in adopting Islamic financing in its financial market.

He said: “We are committed to designing policies targeted at financial deepening and financial diversification for unlocking private sector financing.

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“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.

“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.”

The14th 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 the growing concern to radically switch to a sustainable, net-zero future.

“This transition needs to happen fast, but it also has to happen in a fair and inclusive way. If done right, the transition offers immense opportunities: a systems change in which all communities, workers and countries are lifted up,” 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.