14th Emir of Kano, Muhammadu Sanusi II, has said an essential condition for the development of Islamic finance market in Nigeria is the presence of an effective legal and regulatory framework to provide an enabling environment that will create a level-playing field, and enforce the legality of Islamic finance contracts and ensure Sharia compliance.
Sanusi said Islamic finance provides a potent alternative for resource mobilisation, fair and equitable allocation of resources that could help address the sustainable development goals in Nigeria and help to bridge infrastructure gap.
“Islamic finance offers tremendous potential for both public and private financing in such a way that reinforces the links between finance and the real economy, thereby contributing to both economic growth and financial stability,” Sanusi said at the fifth international conference on Islamic finance in Abuja.
The theme of the Conference is: Infrastructure Financing, Sustainability and the Future of African Markets.
He said the fast expanding global pool of Sharī’ah-compliant capital has become an attractive source for various sovereigns, government-related entities and corporates to tap into, to meet their financing needs.
According to him, Islamic financing modalities offer strong potential for public-private partnerships in financing of physical and social infrastructure. “
struments such as Ṣukūk for example can be structured as a partnership instrument to channel capital into productive activities or the real economy.—Leadership