LAGOS Dec 19 Nigeria is looking for financial
and legal advisers and trustee firms to organise its first
Islamic bond in the domestic market, the country's Debt
Management Office (DMO) said on Monday.
The OPEC member, which is Africa's largest economy, is
working on a debut sovereign sukuk but has yet to determine the
size of a potential deal.
Nigeria, which is in a recession and needs to raise funds to
plug a budget deficit, has set up a government committee to
advise on the amount to be raised from the Islamic bond sale,
the timing and jurisdiction of the issue.
Issuance of a sovereign sukuk is part of a plan by Nigeria's
debt office to develop alternative sources of funding and to
establish a benchmark curve.
In a public notice, the DMO said it required the services of
banks and an issuing house to serve as financial adviser, a
legal firm to serve as a legal adviser and a trustee firm.
It said bids for the roles are to be submitted by Jan. 9.
The advisers are expected to work with the debt office
towards the sukuk issue at a date that is yet to be announced.
In October, the central bank issued guidelines limiting
commercial banks' investment in Islamic bonds issued by state
governments to 10 percent of the total amount on offer and fixed
a maximum tenor of 10 years for the bonds.
Nigeria has the largest Islamic population in sub-Saharan
Africa. Around half of the 180 million people in Africa's most
populous nation are Muslims.
(Reporting by Oludare Mayowa; Editing by Alexis Akwagyiram and