Factors Influencing Sukuk Demand in Nigeria

Sukuk, often referred to as Islamic bonds, have emerged as a key financial element for ethical investment and infrastructure development across the Muslim borders. However, in Nigeria, the level of Sukuk demand remains modest despite the country’s large Muslim population and its growing appetite for faith-compliant finance. This study enriches with the factors influencing Sukuk demand in Nigeria, examining how trust, religiosity, risk perception, financial literacy, and institutional frameworks shape investor decisions. The study adopts a behavioral finance perspective, recognizing that investor demand in Islamic finance is not only driven by profit motives but also by belief, confidence, and perceived moral justifications. Drawing from secondary data, policy reports, and existing literature, the research highlights that demand is often hindered by low financial literacy, limited awareness, and inconsistent regulatory coordination. Yet, success stories recorded such as the Osun State Sukuk demonstrate how transparency and visible development outcomes can build public confidence and expand participation. Ultimately, this paper argues that enhancing Sukuk demand in Nigeria request more than product promotion, it demands rebuilding trust, simplifying structures, strengthening Shariah governance, and integrating digital and educational inclusion strategies. In truth, finance cannot thrive where belief is weak; and where trust is nurtured, demand follows naturally.

Influencing, Demand, Islamic bonds

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