Featured, Interview
AUSTIN Nweze, lecturer, Pan-Atlantic University and economic analyst, speaks with Anayo Ezugwu, staff writer, Realnews, in Lagos, recently on the controversy surrounding issuance of Sukuk bond and concessioning of airports in Nigeria. Excerpts
Realnews: The issuance of Sukuk, Islamic bond by the government is causing uproar among the religious bodies in the country. The Christian Association of Nigeria, CAN, says that Sukuk bond is a subtle way of islamising the country. As an expert what is your take on this?
Nweze: The issue is that the Islamic financial community has been making some incursions into Nigerian economy because of the importance of Nigeria in the comity of nations especially in Africa being the largest economy in Africa. It makes only business sense for some interest groups to want to invest in Nigeria. This started mainly when the former CBN governor Sanusi Lamido Sanusi was in office, he laid the foundation by setting up Islamic banking system like Jaiz bank and also insurance. Basically, what that means is that it is a non-interest financing. What happens is that even if it is a non-interest, you can share profits. It is a profit sharing investment not that it is only free money. They have recently raised a bond which you have option of either investing or not investing. Some people when they invest in the stock market they say because of my religious believes don’t buy me shares of companies that produce alcohol. The same way it could also happen this time, don’t buy me bonds. For example, a Christian may not want to buy the Sukuk bond. But looking at it purely on a business side, there is nothing wrong with it. But on the other hand, it is also part of the global scheme for Islam, not just for Nigeria, to dominate the world’s business, religion and politics. It is a grand plan by the global Islamic community to do this and Nigeria happens to be the major entry point into Africa because of the population and size of the economy. So that is why Nigeria is important to them. That is why CAN is crying that they are using government vehicle to promote Islamic agenda not only in Nigeria but in Africa. Their fears are well founded in a way. They are supposed to react the way they reacted. It is normal because Nigeria is supposed to be a secular state. Government should not use its vehicle to propagate any religion, but we find out that they are even doing more than that. Government is paying for some people to go on pilgrimage, which is not good for the nation. Government involvement in religious affairs is not good for the nation. But business wise, there is nothing wrong with Sukuk.
Realnews: But Singapore is the first non-Islamic country that adopted Sukuk and UK also has something like that …?
Nweze: They are doing it based on purely business module and not as other Islamic countries. Singapore is a non-religious country; their institutions don’t promote any religion. They use Confucian ideals to run the affairs of the government. Britain is a non-religious country which the Arab world has basically taking over. So they adopted it purely on business but there is mutual suspicion between Muslim north and Christian south in Nigeria. We don’t have problems with the western Muslims. Apart from the mutual suspicion, I think it is purely a business thing because government created that suspicion by using government resources to fund religious affairs which they are not supposed to get involved in. If you take out the suspicion, it is purely a business thing which is good for any country because it is based on Quran.
Realnews: What do you think of the federal government’s concession of Apapa-Oworoshoki road to Dangote?
Nweze: I think what the government is trying by all means is to create a Frankenstein’s monster that will hunt the government in the nearest future. Monopoly has never helped any economy and what government has done is to create only one Dangote instead of creating five million Dangotes. Policies are made to favour one man, which is not right. Thinking that one man has all the capacity to solve Nigerian problems is a problem. It is never done anywhere in the world. During the PDP administration under Jonathan waivers were given to some people including Dangote. Do you know what that means, giving a tax break of 10 years or more to all Dangote businesses? Do you know how much revenue government will be losing and the monies will go to individual’s pocket. This is a huge mistake. Mobil built Ajegunle road, Mobil didn’t ask for tax break. It is part of their social responsibility. So government is shaking off their responsibilities to Dongote. So why do we have government? Why won’t we have Dangote as our government? Every little thing, run to Dangote. Refineries are not working and government is not able to build one or allow people who are licensed to do so. They are hoping on one man Dangote for us to stop importation of fuel. When Dangote refinery comes of scream it will solve all our problems, which is wrong thinking.
Realnews: But some people are looking at the revenue that will come from the port if he finishes the road?
Nweze: Who owns the port? By right Dangote should do that road without any tax concession because he bought half of the port. So he should do it as part of his corporate social responsibility because his trucks are there in the port causing traffic.
Realnews: But this kind of concession is it revocable?
Nweze: Of course, every concession is revocable. We have seen new government come in and revoke contracts awarded by the previous administration. Ajaokuta Steel is being revoked. Government is working out the legal issues and as long as there is legal way to get around these things you can revoke it.
Realnews: Let’s talk about the concession of the airports and it is not only airport that the government is talking about, what are the implications?
Nweze: The MM2 was also concession out to Bi-Courtney to run for a number of years before handing over to government. It is one way out because government does not have all the resources to do some of these projects. So, it is a PPP kind of relationship that required government to do it. It has happened in Singapore and some other countries. Infrastructure funding, private capital is always brought in to help government. Most of the airports like the London airport is under concession. There is nothing wrong. It depends on who and how much revenue that will be coming to government. It will make more sense if government gets more money by concession out to private companies than running it themselves. That is when it makes economic sense. Will government make 50 percent or more revenue by running the place or by concession should by the question. If it makes business sense for government to concession fine, let them do it because government has shown they do not capacity to run the airports.
– Sept. 29, 2017 @ 13:03 GMT |
Tags: AUSTIN Nweze Islamic financial community Nothing wrong with Sukuk Bond as a Business Decision but it has Religious Undertone - Nweze Singapore Sukuk
