Nigeria's Sukuk market has still not attracted young retail investors. Industry analysts believe that there is a need for the non-Interest finance sector to design tech and gender-based Sukuk investments. 

Dr. Basheer Oshodi, Trust Arthur's Chief Executive Officer (CEO), made this point while discussing "Sukuk, Infrastructure Development and Inclusive Growth in Nigeria." 

He says this can be achieved through the fintech industry, catalyzing the investment pool that can support technology startups and women-led businesses. 

He believed the youth demography was significant, and innovative products catering to their investment needs would deepen the adoption of Sukuk in Nigeria.

The expert believed that, beyond funding road infrastructure and housing, Sukuk could transform Nigeria's ailing health sector, revitalize the decaying education infrastructure and support the development of an integrated power sector. This, he noted, will lead to a productive economy with resourceful human capital. 

Speaking further on the focus of Sukuk on road infrastructure, he said, "There is a strong relationship between transportation and economic development, especially through trade linkages and improved socio-economic activities."

He added, "Nigeria faces rising poverty and high levels of income inequality that need to be reversed, and using the Sukuk model to finance infrastructure is innovative."

Providing an overview of the Sukuk market and its growth in the country, he raised the point that since 2017 over N600bn has been raised through the Sukuk market, which accounts for about 2% of the nation's Debt Market. He acknowledged that the market is growing in Nigeria, and real estate is tapping into Sukuk in the private sector.

"Sukuk remains a secured instrument, and it is good that the Debt Management Office is encouraging more retail investors to participate in the issuance. The good thing about Sukuk is that there are underlying assets compared to the bonds in the debt capital market".

Dr. Basheer Oshodi said Nigeria is leading Africa in Sukuk issuance but needs to move beyond the region to compete globally with markets like Malaysia.

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