SUSTAINABILITY OF SUKUK (ISLAMIC BOND) AS FINANCING INSTRUMENT FOR BRIDGING INFRASTRUCTURAL DEFICITS IN NIGERIA

Abstract

Sukuk has become a viable financial instrument to reduce infrastructural deficit or the number of abandoned projects in the global capital market across the whole world. Recent situations reveal that the financial instability and inadequacy of funding at the disposal of the government to provide good facilities and maintain them are the major factors that heavily contributes to the infrastructural deficits in Nigeria. This calls for the pressing need to handle the situations.  Adopting a doctrinal method, the paper reviewed and extensively analyzed the existing works on sukuk as being currently practised in Nigeria. The paper addressed the sustainability of sukuk as one of the alternative sources of funding in bridging the infrastructural deficit in Nigeria. The paper examined the challenges in the practice adoption sukuk in Nigeria. The paper recommends, among others, that if sukuk regime gains wider acceptance in Nigeria by tackling all the highlighted challenges, it will enhance the infrastructural development in the country.