Kano State plans to issue a Sukuk bond, a Shari’ah-compliant financing instrument, as part of efforts to diversify funding sources and boost infrastructure development, state officials said on Saturday.
Dr. Hamisu Sadi Ali, Director-General of the State Debt Management Office, made the announcement at the opening of a two-day workshop on the state’s 2026–2027 Medium-Term Debt Management Strategy (MTDS).
The development was contained in a statement by Ameen K. Yassar, Director of Public Enlightenment at the Kano State Ministry of Finance, who signed on behalf of the Ministry.
Sukuk, or Islamic bonds, differ from conventional debt instruments by adhering to Islamic finance principles that prohibit interest. Instead, investors acquire partial ownership of assets financed through the funds raised, ensuring ethical and asset-backed investment.
“This innovative financing instrument will diversify our funding sources, align with ethical investment principles, and channel resources into priority infrastructure projects that will benefit our citizens,” Ali said.
He added that Kano’s debt profile remains within the approved fiscal threshold, emphasizing the government’s commitment to prudent borrowing and responsible financial management.
“Our Medium-Term Debt Management Strategy is not just about borrowing; it is about managing risks, reinforcing fiscal policy, and creating a sustainable foundation for development,” Ali said.
The MTDS, he noted, aims to reduce macro-financial risks and deepen the domestic capital market by supporting a functioning government securities market.
“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.