In a strategic move to finance critical infrastructure and diversify its funding portfolio, the Kano State Government has unveiled plans to launch a Sukuk bond program. The initiative is designed to support the state’s expansive infrastructural drive while adhering to principles of ethical finance.
The announcement was made by the Director-General of the Kano State Debt Management Office, Dr. Hamisu Sadi Ali, during the opening of a two-day workshop on the 2025-2028 Debt Sustainability Analysis and Medium-term Debt Management Strategy (MTDS), held in Dutse.
Sukuk are innovative financial certificates, often termed Islamic bonds, that provide investors with a share of ownership in an underlying asset or project. This structure ensures compliance with Shari’ah law by avoiding interest and instead generating returns through profit-sharing or rental income from the financed asset.
Globally, Sukuk have emerged as a powerful tool for ethical infrastructure financing. Nations including Malaysia, Saudi Arabia, and the Federal Government of Nigeria have successfully utilized multi-billion dollar Sukuk issuances to construct roads, educational institutions, and healthcare facilities.
Dr. Sadi Ali stated that this landmark decision positions Kano State at the forefront of subnational governments in Nigeria harnessing Islamic finance for sustainable development. He emphasized that the Sukuk will enable the state to tap into a growing pool of ethical investment capital, mobilizing significant resources for priority projects in road construction, education, healthcare, and urban renewal.
Addressing the state’s debt sustainability, Dr. Sadi Ali reassured stakeholders that Kano’s debt obligations remain comfortably within approved fiscal limits, ensuring that the new Sukuk issuance will be a responsible and strategic addition to the state’s financial strategy.