Don Backs Sukuk as FG Blast CAN over Criticism

A don and economist at Pan Atlantic University, Lagos, Dr. Austin Nweze, has described Sukuk as  purely a business financial system adopted globally as a component of the Islamic financial system anchored on the principle of non-interest.

He explained that the controversy over the introduction of Sukuk Islamic bond was created by mutual suspicion among religious adherents in the country.

Nweze in an interview with Daily Trust said Singapore, United Kingdom and other non-Islamic states adopted the system based on its merit and not on any religious consideration.

Recently  the Sukuk bond raised by the Federal Government has generated debate in the polity with the Christian Association of Nigeria (CAN) kicking against it.

However, Nweze explained that the system is anchored on usury which both the Qur’an and Bible prohibit.

“Basically what that (Sukuk) means is that it is a non interest financing. You can share profit. It is a profit sharing thing”, he said.

According to him, government’s involvement in matter of religion has fuelled the suspicion and the criticism by CAN.

“If you take that out, it is a purely business thing which is good for us any day. In fact it is based on Qur’an and it is also in the Bible, I think in Psalm four or five which talks about usury. You should not be charging interest. If you go deeper, you will see the relationship between the Qur’an and the Bible”, he added.

In a related development, federal government has blasted Christian Association of Nigeria for critizing the bond.

The minister of Youths and Sports , Bar Solomon Dalung told the BBC that the initiative was created by past administration and there no basis for CAN to oppose it.

He explained that many countries have adopted sukuk bond and have benefited from it, pointing that Nigeria will not be in isolation.