Structuring Sukuk within the Shari’ah Framework for the Nigerian Islamic Capital Market
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Date
2025
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Publisher
OAULJ
Abstract
Sukuk, as an Islamic financial instrument, has gained significant prominence in the global
financial landscape as a viable alternative to conventional bonds. This paper delves into the critical
aspect of structuring Sukuk within the Shari’ah framework, exploring the principles and
methodologies that underpin their development and issuance. Sukuk, in essence, represent the
intersection of Islamic finance and Shari’ah, embodying principles of ethical finance, risk-sharing,
and asset backing. The primary objective of this paper is to provide a comprehensive
understanding of the Shari’ah-compliant structuring mechanisms and considerations that guide
Sukuk issuance. In doing so, the paper highlights the importance of transparency and compliance
with Islamic jurisprudence in Sukuk structuring. Furthermore, the paper examines the various
Sukuk structures that have emerged over the years, such as Sukuk al-Ijarah, Sukuk al-istisna and
others. It also discusses the challenges and complexities associated with Sukuk issuance, most
importantly as it relates to its Asset-Based and Asset-Backed classification. The research draws
on an extensive review of literature, regulatory guidelines, and case studies to illustrate the
practical application of Shari’ah principles in structuring Sukuk. It also examines the evolving
landscape of Sukuk markets worldwide, as well as their role in infrastructure development,
corporate financing, and sovereign fundraising. This paper emphasizes the pivotal role of Shari’ah
compliance in Sukuk structuring, highlighting the need for a harmonious balance between
financial innovation and adherence to Islamic ethics. It contributes to the growing body of
knowledge in Islamic finance by providing a comprehensive guide for practitioners, scholars, and
policymakers involved in the Sukuk market, ultimately fostering the sustainable growth of ethical
finance within the global financial system