Kano gov’t to launch Sukuk bond for infrastructural drive
The Kano State Government has concluded plans to launch a Sukuk bond as part of efforts to expand its funding base, strengthen debt sustainability, and finance critical infrastructure. The Director-General of the State Debt Management Office, Dr. Hamisu Sadi Ali, disclosed this at the opening session of a two-day workshop on the 2025-2028 Debt Sustainability […]
The Kano State Government has concluded plans to launch a Sukuk bond as part of efforts to expand its funding base, strengthen debt sustainability, and finance critical infrastructure.
The Director-General of the State Debt Management Office, Dr. Hamisu Sadi Ali, disclosed this at the opening session of a two-day workshop on the 2025-2028 Debt Sustainability Analysis/Medium-term Debt Management Strategy (MTDS) in Dutse, Jigawa State.
Sukuk, often described as Islamic bonds, are financial instruments structured to comply with Shari’ah principles.
Unlike conventional bonds that rely on interest payments, Sukuk grants investors partial ownership in assets or projects financed by the proceeds.
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The instrument has gained global recognition in recent years as a credible alternative for ethical and infrastructure financing, with countries like Malaysia, Saudi Arabia, and even Nigeria’s federal government issuing multi-billion-dollar Sukuk to fund roads, schools, and health facilities.
Dr. Sadi Ali said the move would position Kano among progressive subnational governments leveraging Islamic finance to fund development.
He emphasised that the Sukuk bond would allow the state to diversify funding sources, align with ethical investment principles, and mobilise resources for priority projects such as roads, education, healthcare, and urban renewal.
Highlighting the state’s debt profile, Dr. Sadi Ali assured that Kano’s obligations remain well within approved fiscal thresholds.