Showing posts from June, 2017

Sukuk? Hold that thought!

I once heard the managing director of a Nigeria investment bank postulate a “perception deception” theory as the culprit and the major inhibiting factor to the successful development of vibrant non-interest capital market in Nigeria. This theory essentially suggests that a lack of understanding of the principles which underlie these capital market products is responsible for the erroneous perception by the lay man, that such non-interest financial instruments as Sukuk are geared at portraying the nation as an Islamic state.
Maybe/Maybe not; Nigeria is well on its way to issuing its maiden sovereign Sukuk, and No this does not make the country an Islamic State. 
Sukuk is popularly known as an Islamic or Sharia compliant instrument and may be either asset-based or an asset-backed financing instrument. How is this different from the conventional bonds, you might ask. Sukuk issuances are typically governed by the principles of Islamic commercial jurisprudence which prohibits the charging o…

Towards a competition Regime in Nigeria; Are we there yet?

Is this is it? Should we get our hopes up? Nigerians seem to have lost count of the ‘almost there’ feeling that comes with every competition bill that appears to make significant progress at the National Assembly only to get dropped along the way.
A search through the archives of the Nigerian parliament will reveal several abandoned bills on the subject among which are the Restrictive Trade Practices, Monopolies and Price Control Bill, the Nigerian Trade and Competition Commission Bill, and the Nigerian Antitrust (Enforcement and Miscellaneous provisions) Bill. According to a briefing paper on the UK Competition Regime, “competition is the lifeblood of a vibrant economy and fundamental to growth”. What then is it that keeps frustrating the efforts at a substantive competition regime in Nigeria?
The current bill before the 8th National Assembly seems promising, considering that it does not recommend the establishment of an entirely new agency, which has been one of the major reasons for…