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An Appraisal of the Economic Utility of Sukuk in Financing Budget Deficits in Nigeria

From 2000 to 2015, Nigeria has recorded an average annual budget deficit of N564.10 billion, largely financed by issuing Federal government bonds. Despite this, the country’s struggle for macroeconomic stability and overall development remains elusive and pervasive.This study appraises the economi...

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Main Authors: Baita, Abubakar Jamilu, Mustafa, Daud
Format: Conference or Workshop Item
Language:English
Published: 2017
Subjects:
HC Economic History and Conditions
Online Access:http://repo.uum.edu.my/24806/1/2nd%20IRC%202017%2044.pdf
http://repo.uum.edu.my/24806/
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spelling my.uum.repo.248062018-09-26T02:03:57Z http://repo.uum.edu.my/24806/ An Appraisal of the Economic Utility of Sukuk in Financing Budget Deficits in Nigeria Baita, Abubakar Jamilu Mustafa, Daud HC Economic History and Conditions From 2000 to 2015, Nigeria has recorded an average annual budget deficit of N564.10 billion, largely financed by issuing Federal government bonds. Despite this, the country’s struggle for macroeconomic stability and overall development remains elusive and pervasive.This study appraises the economic utility and significance of sukuk (Islamic bonds) as an alternative instrument of financing budget deficits in the Nigerian economy. The study uses content and trend analysis with the secondary sources of data to achieve the objective of the study.Essentially, the study posits that the issuance of sukuk as an alternative to other interest bearing financial instruments can effectively control the historically burgeoning budget deficits and significantly complement in achieving macroeconomic and developmental objectives in Nigeria.Also, sukuk has the economic utility to promote fiscal sustainability, which is a necessary requirement for sustainable economic growth and development of any nation. The study is limited to the appraisal of sukuk in financing budget deficits in Nigeria, even though there are other sources of finance.The practical contribution of the study is that sukuk will provide an avenue for the Nigerian economy to source more funds for accelerating economic diversification.The study therefore recommends that Nigerian government should effectively and efficiently harness the potentials of Islamic bond in financing its large deficits by integrating sukuk into the fiscal sustainability strategy of the country.Also, the Federal government should encourage the state governments of Muslim populated states to adopt sukuk and integrate it as part of their fiscal strategic policies. 2017-07-11 Conference or Workshop Item PeerReviewed application/pdf en http://repo.uum.edu.my/24806/1/2nd%20IRC%202017%2044.pdf Baita, Abubakar Jamilu and Mustafa, Daud (2017) An Appraisal of the Economic Utility of Sukuk in Financing Budget Deficits in Nigeria. In: 2nd International Research Conference on Economics Business and Social Sciences, 11-12 July 2017, Park Royal Hotel Penang Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HC Economic History and Conditions
spellingShingle HC Economic History and Conditions
Baita, Abubakar Jamilu
Mustafa, Daud
An Appraisal of the Economic Utility of Sukuk in Financing Budget Deficits in Nigeria
description From 2000 to 2015, Nigeria has recorded an average annual budget deficit of N564.10 billion, largely financed by issuing Federal government bonds. Despite this, the country’s struggle for macroeconomic stability and overall development remains elusive and pervasive.This study appraises the economic utility and significance of sukuk (Islamic bonds) as an alternative instrument of financing budget deficits in the Nigerian economy. The study uses content and trend analysis with the secondary sources of data to achieve the objective of the study.Essentially, the study posits that the issuance of sukuk as an alternative to other interest bearing financial instruments can effectively control the historically burgeoning budget deficits and significantly complement in achieving macroeconomic and developmental objectives in Nigeria.Also, sukuk has the economic utility to promote fiscal sustainability, which is a necessary requirement for sustainable economic growth and development of any nation. The study is limited to the appraisal of sukuk in financing budget deficits in Nigeria, even though there are other sources of finance.The practical contribution of the study is that sukuk will provide an avenue for the Nigerian economy to source more funds for accelerating economic diversification.The study therefore recommends that Nigerian government should effectively and efficiently harness the potentials of Islamic bond in financing its large deficits by integrating sukuk into the fiscal sustainability strategy of the country.Also, the Federal government should encourage the state governments of Muslim populated states to adopt sukuk and integrate it as part of their fiscal strategic policies.
format Conference or Workshop Item
author Baita, Abubakar Jamilu
Mustafa, Daud
author_facet Baita, Abubakar Jamilu
Mustafa, Daud
author_sort Baita, Abubakar Jamilu
title An Appraisal of the Economic Utility of Sukuk in Financing Budget Deficits in Nigeria
title_short An Appraisal of the Economic Utility of Sukuk in Financing Budget Deficits in Nigeria
title_full An Appraisal of the Economic Utility of Sukuk in Financing Budget Deficits in Nigeria
title_fullStr An Appraisal of the Economic Utility of Sukuk in Financing Budget Deficits in Nigeria
title_full_unstemmed An Appraisal of the Economic Utility of Sukuk in Financing Budget Deficits in Nigeria
title_sort appraisal of the economic utility of sukuk in financing budget deficits in nigeria
publishDate 2017
url http://repo.uum.edu.my/24806/1/2nd%20IRC%202017%2044.pdf
http://repo.uum.edu.my/24806/
_version_ 1644284145787994112
score 13.211869

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