The introduction of the Sukuk Islamic Bond by the federal government has been frowned upon and flatly rejected by the Christian Association of Nigeria, CAN.
According to the apex Christians body in Nigeria, by floating the Sukuk bond, the Federal Government is introducing Islamic financing into a secular state in violation of Section 10 of the Constitution.
In a statement by its General Secretary, Dr. Musa Asake, which reads: ‘’The recent floating of Sukuk Bond by the Federal Government is not only sectional but illegal and a violation of the Constitution. Every law that has been promulgated to back the Sukkuk issuance and promote an Islamic banking system in Nigeria is ultra vires, illegal, null and void.
Islamic finance is financing which conforms to the doctrines of the Islamic law known as “Shari’a”. The sources of Shari’a (in hierarchical order) are as follows:
(1). The Qur’an; (2). Sunna (the teachings and practices of The Prophet Muhammad); and (3). Ijtihad and Fiqh (Islamic jurisprudence).
‘’Our objections to the Sukuk Bond and all forms of Islamic financing are as follows: Funds raised under Sukkuk MUST be used for Shariah compliant (halal) activities. Nigeria is not a Sharia compliant nation, it is a democratic country. Nigeria cannot operate two national Ideologies.
“The Sukuk shall be governed by, and construed in accordance with the laws of the Federal Republic of Nigeria as well as the Islamic Law of Mu’amalatmaliyyah. We insist that there cannot be two laws for one nation.
‘’Sukuk is asset-based banking system unlike the conventional banking that is asset-backed. While under the conventional banking system, the borrower provides collateral to back the loan and retrieves his asset after the loan is redeemed, under Sukuk, the loan is based on an asset which is land and irredeemable. The Sukuk holder (lender) accepts land as asset on which the loan is based. At no time does the title pass to the customer, nor is it expected to pass. If the customer wishes to retrieve his asset at a later date, a separate agreement has to be drawn up.
“The operation of Sukuk is based on Islamic value system and Sharia Jurisprudence. This makes Sukuk unconstitutional. The IMF says that the issuance of Sukuk by non-Islamic states/countries is a breach of the religious neutrality of the government of such state.”
