The President Muhammadu Buhari-led federal government may have found a new way of funding the 2016 budget, according to reports.

This new resort, a Sukuk Bond, was secured as the budget deficit widens due to pressure on the federal revenue following steady decline in oil revenue.

The Bond is said to be a financial certificate which is similar to the traditional government bond, but aligns with Sharia, Islamic religious law. To achieve this, the Debt Management Office, DMO, and Securities and Exchange Commission (SEC) are working hand in hand to issue the Nigerian sovereign Islamic bonds this year.

Although the details of the revenue to be generated from the bond has not been disclosed, officials confirmed that they expect significant bridging of the 2016 budget deficit which has exceeded the initial N2.2 trillion estimate.
“Issuing a sovereign Sukuk will attract significant amounts of affordable capital from the Gulf countries and other established Islamic markets around the world into Nigeria,” the DMO informed.

Meanwhile, Nigeria’s minister for information and culture, Alhaji Lai Mohammed, has given reasons the President’s budget may not work if the issue of corruption is not tackled.

Source: https://www.naij.com/703346-president-buhari-figured-new-way-fund-2016-budget.html

I may not ve understood the jagoons but whatever decision they are taking, they shuld always remember Nigeria is a circular country.

Hmm

This is complete bullocks! Why give it a fancy name to make it look unique, when it is nothing more than borrowing by issuing debt instrument (govt bonds).
---
I understand macroeconomics enough not to blame this administration for the sad economic realities that are befalling the country. My grouse with them is their response and their communication strategy.
---
Now, let's understand the implications of this new borrowing. Let's say it is $3b (N600b), to replace lost revenue from oil sales and other tax revenue. This will take our total borrowing to N2.8tn leading to a budget deficit of 47%. This will also increase our debt servicing expense by ~N60bn.

Sunnymatey:
I may not ve understood the jagoons but whatever decision they are taking, they shuld always remember Nigeria is a circular country.

secular

Islamic?

PRYCE:
Islamic?

Zero interests.

Mynd44:

Zero interests.

The word 'Islamic' there would draw negative notion!...

Already there are founded rumours in some quarters about a plot to islamise the country... So whether that word is used in Economics or Sublantics, it's gonna send chills down the wrong places.

Am I wrong?

So when you're not banning or closing threads, you're also having zero interests in politics.

Mynd44:

Zero interests.

The Bond is said to be a financial certificate which is similar to the traditional government bond, but aligns with Sharia, Islamic religious law. To achieve this, the Debt Management Office, DMO, and Securities and Exchange Commission (SEC) are working hand in hand to issue the Nigerian sovereign Islamic bonds this year

Hehehehe, That's how it starts.

Small small they are introducing Islam....they are making it look captivating because they know that people are no longer interested in 'by force' islamization...