Kano Govt Completes Plans For SUKUK Bond

Kano State government has cocluded arrangements to launch a SUKUK bond, an Islamic financial certificate that mirrors bonds in western finance but adheres to Shari’ah principles.

This was made known by the director-general of the State Debt Management Office, Dr Hamisu Sadi Ali, at the opening of a two-day workshop on Development of Kano State 2026-2027 Medium-Term Debt Management Strategy (MTDS).

Unlike traditional interest-bearing bonds, SUKUK involves selling certificates to investors, who then gain partial ownership in an asset purchased with those funds.

“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 stated.

He added that 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,” he added.

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,” he said.