SECULARISM, ISLAMISATION AND THE PROSPECTS OF SUKUK UNDER NIGERIAN LAW

The Federal Government of Nigeria (FGN) recently floated Sukuk bonds to finance road projects across the country. No sooner this was done, individuals and interest groups across the nation expressed varying degrees of dissent against the initiative, tagging it a plot to “Islamise” Nigeria, against the spirit and letter of the Constitution, and a violation of Nigeria’s secular status. In light of this development, this paper examines the issues raised through a constitutional prism, and also, the legal framework for the issuance of Sukuk. This is achieved doctrinally in order to ascertain its compatibility with the secular system articulated in the Constitution. The paper, thus, reveals that while it is perfectly within the rights of any group to express fears and concerns over the FGN’s prescription of a product based on Islamic jurisprudence, it is also important that it is done with moderation, as the move merely promotes inclusive participation in the financial sector by the substantial number of Muslims whose religion prohibits conventional bond due to its reliance on principles that are strictly incompatible with Islamic injunctions. The paper further argues that there is no legal basis, nor empirical proof that it is in violation of Nigeria’s secular status or any constitutional principle. It, thus, recommends that the legal framework be -concretized and vigorous enlightenment campaign is embarked upon by the FGN; also, a platform is established for constant engagement with interest groups in order to ensure that all persuasions are carried along.