States Consult Osun On Islamic Bond

Staff November 6, 2013

Despite criticism it generated especially from Christians in Osun State, some states of the federation have begun consultations with Osun on how to raise investment bond for infrastructural development of their respective states.
Osun Commissioner for Finance, Budget and Economic Planning, Dr. Wale Bolorunduro who disclosed this while speaking with newsmen in Osogbo, said that some states in the country have approached Osun on how to raise bond from Sukuk (Islamic bond) and conditions attached.
It would be recalled that British Government recently raised about 300million Euro from Sukuk shortly after Osun State was completing the N11.4billion bond of the same fund for infrastructural development of the state.
Bolorunduro, enunciating the economic importance of the Sukuk bond to the people of the state, said the investment is the cheapest and fund solution into the future of the state.
According to him, “the Sukuk is a fund solution of the future because it has attracted fresh investors to the state and at the same time creates opportunities for the existing investors who are looking for high yield to diversify their investment.”
He explained that with Sukuk, Osun has set the path for the infrastructural development and that there was no single Islamic jurisprudence attached to it as erroneously claimed from some quarters.
The commissioner further noted that there was no bilateral agreement required and there was no basis for Christians to feel sad about it. “It was done in accordance with investment and security act of secular country called Nigeria and to make everybody comfortable,” he said, adding: “Sukuk bond has attracted fresh investors, people who naturally would not have invested in the capital market and they are sure that their money will not go into vanity such as hotels, night clubs and so on but commercial infrastructure and trading.
“To be transparent; the fund was not put into the budget because you have to see what it was used for.”
DAILY INDEPENDENT