By Ibrahim, Mohammed LawalMustapha, Alhaji Bukar
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Abstract
This paper seeks to examine the role of Islamic bond (sukuk) in petroleum infrastructural development in Nigeria. The paper used a non-discounting method of project analysis (the payback period) to analyze 15,000 bpd modular refineries in six states spread across the oil producing areas. The project is intended to produce gasoline, diesel and kerosene products. It is estimated that a sum of N151billion sukuk is required for a period of 3years; the construction period is 18 months and the project can last for a period of 20 years before major repairs can be done. The study revealed that this would resulted in the production of 2.2billion liters of gasoline (premium motor spirit), 1.1bilion liters of diesel and 204 million liters of Kerosene per annum with a total gross annual revenue of N125billion. The study concluded that sukuk would adequately contribute to the expansion and establishment of new refineries. This would help in the bridging of the existing demand-supply gap for petroleum products in Nigeria.
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