The Christian Association of Nigeria (CAN) said on Wednesday that the issuance of Sukuk by the Federal Government through Debt Management Office (DMO) is a ploy to transmute Nigeria into an Islamic state.
CAN said the introduction of Islamic financing into a secular state is in violation of both the spirit and the letter of Section 10 of the constitution.
The association noted that it has been protesting against “this aberration since the Osun State government, under Governor Rauf Aregbesola embarked on this violation of the constitution”, noting that “rather than stand in defence of the constitution, it is disappointing to note that the Federal Government is pursuing what is out rightly a confirmation of an Islamisation agenda”.
In a statement by Rev. Musa Asake, General Secretary, CAN, the body said, “The recent floating of Sukuk bond by the Federal Government is not only sectional but illegal and a violation of the constitution. Every law that has been promulgated to back the Sukuk issuance and promote an Islamic banking system in Nigeria is ultra vires, illegal, null and void.
“According to the constitution, the Nigerian state is secular and government is expected to be neutral on issues involving religion. By promoting a sectional religious financial policy, the government is violating both the spirit and the letter of section 10 of the constitution.
“Funds raised under Sukuk must be used for Sharia compliant (halal) activities. Nigeria is not a Sharia-compliant nation, it is a democratic country. Nigeria cannot operate two national ideologies.
“The Sukuk shall be governed by, and construed in accordance with the laws of the Federal Republic of Nigeria as well as the Islamic law of Mu’amalatmaliyyah. We insist that there cannot be two laws for one nation.
“Sukuk is asset-based banking system unlike the conventional banking that is asset backed. While under the conventional banking system, the borrower provides collateral to back the loan and retrieves his asset after the loan is redeemed, under Sukuk, the loan is based on an asset which is and irredeemable. The Sukuk holder (lender) accepts land as asset on which the loan is based.
“At no time does the title pass to the customer, nor is it expected to pass. If the customer wishes to retrieve his asset at a later date, a separate agreement has to be drawn up. This in our view, is a sly and treacherous attempt to sell Nigeria to Arab Islamic nations. It infringes on the sovereignty of Nigeria as the loan giver becomes part owner of the land of the receiver.
“The IMF says that the issuance of Sukuk by non-Islamic states/countries is a breach of the religious neutrality of the government of such state.”
The association called on the government to revoke all legal and institutional framework established to promote Islamic financing in Nigeria.
“The new rules/amendments to the rules and regulations of the Securities and Exchange Commission, Section 313(6) of the Investments and Securities Act 2007, and all other forms of law guiding operation of Sukuk issuance in Nigeria should be repealed, forthwith.
“In the alternative, legal redress will be sought to defend the sovereignty and territorial integrity of Nigeria if the National Assembly failed to checkmate the executive on this unconstitutional action.”
It would be recalled that offer for subscription on the Sukuk opened on September 14 and ended September 20.
Patience Oniha, Director General, DMO, had said that proceeds from the bonds would be used to finance the construction of 25 economic roads across the six geo-political zones of the country.
Reacting, Lai Mohammed advised the leadership of CAN to stop misleading its members and overheating the polity through false alarm of alleged Islamisation of the country.
Minister of Information, also enjoined the leadership of the Christian body to do a research on what Sukuk bond means before jumping into conclusion that it is meant to islamise the country through the back door.
According to the minister, “I think they should find out more about what Sukuk means. If they know what Sukuk means, I am sure they will not be making this allegation. In Europe and America, most of the infrastructures there were actually financed by Sukuk bonds. Sukuk is very simple, it is about financial inclusiveness. The ethical values of some people will not allow them to invest in bonds that will yield interests, Sukuk does not yield interest.
“This allegation of wanting to Islamise Nigeria is becoming a big joke now. How can you say the attempt to raise Sukuk bond is an attempt to Islamise you? We should concentrate our energies on things that will unite us and not on things that will divide us. We should eliminate this air of mutual suspicion and distrust.
“Do they know that at a point in time, Ngozi Okonjo-Iweala was a director of Islamic bank? I think all these attempt to divide Nigeria along religious lines should stop. We are looking for money to develop our infrastructure. Other parts of the world that are even more Christian than us are taking advantage of Sukuk bond.
“I think CAN should stop misleading their followership and stop overheating the polity”, the minister said.
