SUKUK BOND AND INFRASTRUCTURE DEVELOPMENT IN NIGERIA- LESSONS FROM THE SOUTH-WEST GEO-POLITICAL ZONE
Abstract
The infrastructural deficit in developing countries necessitates alternative financing mechanisms beyond government funding, with Sukuk bonds emerging as a viable solution. This study examines the role of Sukuk bonds in promoting infrastructural development in Nigeria’s South-West geopolitical zone. Using historical data from the Debt Management Office and case studies of Sukuk-funded projects, the study highlights the issuance, types, and Shariah-compliant principles of Sukuk, including Ijara, Musharaka, Murabaha, Mudaraba, Istisna, and Salam structures. The analysis demonstrates that Sukuk financing has facilitated the development and rehabilitation of critical road networks, such as the Benin-Ofosu-Ore-Ajebandele-Shagamu dual carriageway and the Ibadan-Ilorin road, thereby addressing funding gaps, reducing project completion times, and boosting investor participation. Lessons from the South-West experience emphasize the importance of government intervention, public-private partnerships, long-term planning, diversified funding sources, regional cooperation, and inclusive infrastructure for sustainable economic growth. The study concludes that Sukuk bonds represent an effective and replicable financing tool for infrastructure development in Nigeria, enhancing financial inclusion, capital market depth, and economic growth prospects.
This article is available as a PDF download
Published in INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND TAXATION
ISSN: 3027-0378
This article appears in our peer-reviewed academic journal
View JournalRelated Articles
Explore similar research in our collection
FAIR VALUE ACCOUNTING AND FINANCIAL REPORTING OF CORPORATE ORGANISATIONS INNIGERIA
James Kereotu Oyadonghan, Emotongha Baff Bekeboh
May 9, 2026
This study examines the impact of fair value accounting on financial reporting of corporate organisa...
View ArticleMONETARY POLICY AND RETURN ON EQUITY OF DEPOSIT MONEY BANKS IN NIGERIA
Kenneth Ikenna Madu, Prof. G.I. Anyanwu, & Dr. Peters Ihejirika
May 6, 2026
This study investigated the effects of monetary policy on the return on equity (ROE) of Deposit Mone...
View ArticleBUDGETING ALLOCATION AND UTILIZATION IN THE NIGERIA PUBLIC SECTOR: HOW WIDE IS THE DISPARITY
Onunwo, Kevin Okechukwu Abel, Ebele Patricia Ifionu
Apr 7, 2026
This study examines public budget allocation and utilization in Nigeria’s health, education, and a...
View Article