"Sukuk" is an Arabic term which simply means "certificates". Its origin can be traced to the classical Islamic period during which papers representing financial obligations from trade and other commercial activities were issued.
According to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI); sukuk refers to "certificates" of equal value representing common shares in ownership of tangible assets, usufruct, and services or (in the ownership of) the assets of a particular project or a specific investment activity.
Investing in sukuk is a good way to preserve your capital.
Traditionally Nigerian Sukuk instruments have outperformed other instruments like equities
Furthermore, if the investor holds the Sukuk instrument to maturity, they will receive their original principal investment plus all the accrued rentals
Sukuk instruments trade at a premium on the secondary market. Owners enjoy a gain in the price of their instruments
✓ Represent ownership interest in assets.
✓ Bonds represent a pure debt obligation from the issuer.
✓ The funds raised from Sukuk issuance must be used only for ethical purposes
✓ Bonds can be issued to finance any legal purpose
✓ The sale of Sukuk represents the sale of the holder’s interest in an asset
✓ The sale of a Bond is the sale of a debt.
All non-interest products and services including sukuks are required to be reviewed and certified as compliant with the principles of Islamic law by a Shariah board composed of scholars knowledgeable in non-interest finance prior to issuance.
Proceeds of sukuk can be used for the following projects areas: Agriculture, Roads, Air Transport, Rail Transport, Power, Petroleum Refining, Mass Housing, Education, Health facilities, Water, and sanitation e.t.c.
It is a secure investment backed by the full faith and credit of the FGN.
Provides opportunity for the diversification of asset portfolio.
Investors will be paid semi-annually.
Rental Income is Tax-free.
Acceptable as collateral for borrowing from banks and other financial institutions
Classified as Liquid Asset by the Central Bank of Nigeria.
To be listed and traded on the Nigerian Exchange Limited and the FMDQ SecuritiesExchange Limited, thereby providing liquidity opportunities to Sukuk holders
It offers competitive returns to Sukuk holders
Yes. Trading can be done on the floor of the Nigerian Exchange Limited and on the FMDQ
Securities Exchange platform, in accordance with the Prospectus by licensed dealers.
Returns due to you will be paid twice a year to the bank account details you provide on the Application Form.
At maturity, your principal investment will also be paid to the same bank account details
Your Custodian/CSCS account will be credited with the Sukuk units allotted to you and you
will be duly notified of the credit through SMS.
You can request your stockbroker or securities dealer to sell your Sukuk on your behalf on
the floor of the Nigerian Exchange Limited or the FMDQ Securities Exchange Limited upon
Households – Individuals and families (local and foreign residents)
Small businesses –Traders, Merchants, Professionals firms e.t.c.
Associations and Unions – Professional bodies, Cooperative societies, Student Union Governments, Trade Unions, Town Unions, Chambers of Commerce e.t.c
Religious Bodies – Churches, Mosques e.t.c
Educational institutions – Primary, Secondary and Tertiary