Expert urges Tinubu to explore Sukuk over fresh foreign loans

A fiscal expert, Asiwaju Busari Shaamsuddeen Akande, has urged the Federal Government to research sovereign Sukuk and different non-interest financing instruments arsenic portion of efforts to money infrastructure without worsening Nigeria’s indebtedness burden.

Akande, who made the proposal successful Calabar portion examining President Bola Tinubu’s projected outer borrowing plan, said the authorities should harvester alternate financing with strict controls implicit the usage of borrowed funds.

He argued that the government’s quality to repay loans should beryllium assessed against its existent gross alternatively than the country’s gross home product, informing that precocious debt-servicing costs could constrain spending connected nationalist services and development.

The adept called for project-specific accounting and monitoring to guarantee that each indebtedness was deployed for its intended purpose.

He recommended that projects specified arsenic larboard modernisation and powerfulness transmission should beryllium assessed for their capableness to make revenue, prevention overseas speech oregon stimulate concern accumulation earlier they are financed with borrowed funds.

Akande besides projected the usage of asset-backed Sukuk, including leasing and construction-financing arrangements, to pull organization investors to infrastructure development.

He said the attack could nexus financing to tangib...