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Appraisal of Economic Benefits of Sukuk in Financing Budget Deficits in Nigeria تقييم الفوائد الاقتصادية للصكوك في تمويل عجز الميزانية في نيجيريا

Author

Listed:
  • Abubakar Jamilu Baita

    (Assistant Lecturer, Department of Economics, Yusuf Maitama Sule University, Kano, Nigeria)

  • Daud Mustafa

    (Associate Professor, Department of Economics and Development Studies, Federal University Dutsinma, Katsina State, Nigeria)

Abstract

This study appraises the economic significance and benefits of sukuk in financing budget deficits in the Nigerian economy. Using secondary sources of data, the study employs content and trends analyses to achieve its objective. Essentially, the study posits that the issuance of sukuk as an alternative to other interest-bearing financial instruments can effectively finance budgetary and infrastructural deficits and complement in achieving developmental objectives in Nigeria. Also, sukuk has the potential of promoting fiscal sustainability of the Nigerian economy. It is therefore recommended that the federal government should integrate sukuk as part of its fiscal strategic policies for financing budgetary and infrastructure deficits. تقيم هذه الدراسة من الناحية الاقتصادية أهمية وفوائد الصكوك في تمويل عجز الميزانية في الاقتصاد النيجيري. باستخدام مصادر البيانات الثانوية، تستعمل هذه الدراسة تحليلات المحتوى والاتجاهات لتحقيق هدفها. بشكل أساسي، تفترض الدراسة أنه بإصدار الصكوك كبديل للأدوات المالية الأخرى الربوية يمكن بفعالية تمويل العجز في الميزانية والبنية التحتية. ويمكن للصكوك كذلك أن يساهم في تحقيق الأهداف التنموية لنيجيريا. أيضا، لدى الصكوك القدرة على تعزيز الاستدامة المالية للاقتصاد النيجيري. ولذلك توصي الدراسة بأن تقوم الحكومة الفيدرالية بدمج الصكوك كجزء من سياساتها الإستراتيجية المالية لتمويل عجز الميزانية والبنية التحتية.

Suggested Citation

  • Abubakar Jamilu Baita & Daud Mustafa, 2019. "Appraisal of Economic Benefits of Sukuk in Financing Budget Deficits in Nigeria تقييم الفوائد الاقتصادية للصكوك في تمويل عجز الميزانية في نيجيريا," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 32(1), pages 145-158, January.
    • Handle: RePEc:abd:kauiea:v:32:y:2019:i:1:no:11:p:145-158
    DOI: 10.4197/Islec.32-1.11
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    References listed on IDEAS

    as
    1. Asian Development Bank (ADB), 2014. "Asia Bond Monitor - March 2014," ADB Reports RPS146338-2, Asian Development Bank (ADB), revised 26 Jun 2014.
    2. Mohamed Ariff & Munawar Iqbal & Shamsher Mohamad (ed.), 2012. "The Islamic Debt Market for Sukuk Securities," Books, Edward Elgar Publishing, number 14550.
    3. Mohamed Ariff & Meysam Safari & Shamsher Mohamed, 2012. "Sukuk Securities, their Definitions, Classification and Pricing Issues," Chapters, in: Mohamed Ariff & Munawar Iqbal & Shamsher Mohamad (ed.), The Islamic Debt Market for Sukuk Securities, chapter 2, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Budget deficit; Sukuk; Bonds; Deficit financing; Infrastructure; Nigerian economy. عجز الميزانية - صكوك - السندات - تمويل العجز - البنية التحتية - الاقتصاد النيجيري.;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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