A DECADE IN RETROSPECT: ANALYSIS OF SOVEREIGN IN NIGERIA
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Date
2025
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Department of Sharia, Faculty of Law, University of Maiduguri, Nigeria.
Abstract
This paper explores the emergence and implications of sovereign Sukuk issuance in the Nigerian financial landscape. Sukuk, as Islamic financial instruments, have gained global recognition for their compliance with Shari’ah principles and their potential to mobilize capital for infrastructure development. This paper provides an in-depth analysis of the historical context and regulatory framework surrounding the introduction of sovereign Sukuk in Nigeria. The study delves into the motivations driving the Nigerian government's adoption of Sukuk as an alternative financing mechanism, considering factors such as economic diversification, infrastructure deficit, and the desire to attract Islamic investments. Through a comprehensive literature review via doctrinal research, the paper evaluates the performance and impact of sovereign Sukuk on Nigeria's economic indicators, fiscal policies, and the broader financial market. Furthermore, the research assesses the challenges and opportunities associated with the implementation of sovereign Sukuk , considering both domestic and international perspectives. It investigates the investor perceptions, market dynamics, and regulatory adaptations required to facilitate the successful integration of Sukuk within Nigeria's financial architecture. The findings of this study contribute to the existing body of knowledge on Islamic finance, offering insights into the specific context of sovereign Sukuk within the Nigerian economic landscape. The paper concludes with policy recommendations and prospects, aiming to guide policymakers, financial institutions, and investors in navigating the evolving landscape of Islamic finance in Nigeria.