Appraisal of Economic Benefits of Ṣukūk in Financing Budget Deficits in Nigeria

This study(1) appraises the economic significance and benefits of ṣukūk 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 ṣukūk 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, ṣukūk has the
potential of promoting fiscal sustainability of the Nigerian economy. It is therefore
recommended that the federal government should integrate ṣukūk as part of its fiscal
strategic policies for financing budgetary and infrastructure deficits.