Kano State Government has hinted that it will soon launch a Sukuk bond.
BizPoint reports that Sukuk are defined by the Accounting and Auditing Organization for Islamic Financial Institutions, AAOIFI, as “securities of equal denomination representing individual ownership interests in a portfolio of eligible existing or future assets.”
The Fiqh academy of the OIC legitimized the use of sukuk in February 1988.
Sukuk were developed as an alternative to conventional bonds which are not considered permissible by many Muslims as they pay interest (prohibited or discouraged as Riba, or usury), and also may finance businesses involved in activities not permitted under Sharia (gambling, alcohol, pork, etc.)
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Sukuk is Islamic financial certificates that mirror bonds in Western Finance but adhere to Shari’ah principles. Unlike traditional interest-bearing bonds, sukuk involve selling certificates to investors, who gain partial to investors, who then gain partial ownership in an asset purchased with those funds.
In a statement by Ameen K. Yassar,
Director, Public Enlightenment Kano State Ministry of Finance in Kano on Saturday, the Director-General of the State Debt Management Office, Dr Hamisu Sadi Ali gave the indication at the opening of a two-day workshop on development Kano State 2026–2027 Medium-Term Debt Management Strategy, MTDS.
“This innovative financing instrument will not only diversify our funding sources but also align with ethical investment principles, while channeling resources into priority infrastructure projects that will benefit our citizens”, Dr. Sadi Ali emphasized.
He said while Kano State’s debt remains well within the approved fiscal threshold, the present administration in the state is committed to keeping it that way.
“Our Medium-Term Debt Management Strategy, MTDS, is not just about borrowing; it is about managing risks, reinforcing fiscal policy, and creating a strong and sustainable foundation for development”, Dr. SAdi expalined.
According to him, it also helps the state government to reduce macro-financial risks and deepen the domestic capital market by supporting the growth of a functioning government securities market.
He highlighted that the 2026–2027 MTDS represents more than just figures and projections but a roadmap to sustainable debt management, fiscal responsibility, and economic resilience.
“It reflects our collective resolve to ensure that every borrowing decision is guided by prudence, responsibility, and the ultimate goal of improving the lives of our people”, the Director-general added.
