Uwaleke Advocates Sukuk Financing to Boost Trust in Nigeria

Prof. Uche Uwaleke, a prominent professor of capital market and head of the Institute of Capital Market Studies at Nasarawa State University, has advised the Nigerian federal government to explore project-tied Sukuk financing as an alternative to conventional loans. This recommendation comes in light of the government's request for approval to raise $20.52 billion and €1.045 billion in external loans, which has sparked public concern regarding Nigeria's rising debt burden.

Uwaleke argues that Sukuk can enhance transparency and accountability in public borrowing, addressing public skepticism about the effectiveness of government borrowing in delivering infrastructure outcomes. He emphasizes that the public's distrust stems from a lack of information on how borrowed funds are utilized and the tangible benefits derived from such investments.

Uwaleke notes that while President Bola Tinubu has justified the borrowing for infrastructure needs, the public's apprehensions are rooted in Nigeria's historical debt accumulation and the limited visible impact on infrastructure development.