Introduction
The international and domestic capital markets, in exploring various forms of funding options, over the years have facilitated the prominence of ethical-based debt financing. In recent times, the government and corporate entities within Nigeria are increasingly accessing the capital markets to attract funding from investors inclined to a peculiar form of ethical-based debt instruments known as Sukuk. Sukuk refers to sharia-compliant financial instruments representing undivided interests in the ownership of defined assets. Sukuk are based on prescribed principles of Islamic Law, and as an Arabic term, it relates to investment certificates or notes which indicate proportionate interest of the holders in the ownership of tangible assets, usufructs and services or investment in the assets of particular projects or investment activities that adhere to the principles of Shariah.
