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Asset-Backed Sukuk for Sustainable Transportation Infrastructure: International Comparative Analysis and Policy Implications

  • Jul 1, 2026
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Abstract Book of the 11th International Conference on Management, Economics and Finance

Year: 2026

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Asset-Backed Sukuk for Sustainable Transportation Infrastructure: International Comparative Analysis and Policy Implications

Sulayman Ashiru

ABSTRACT:

This study examines how asset-backed ethical finance, specifically Sukuk, can address the lack of research on funding sustainable transportation infrastructure in South West Nigeria, where roads, railways, and other transport systems are underdeveloped and public debt is high. In Nigeria, most borrowing is done the traditional way, with high interest, which does not support long-term development. But Sukuk is an Islamic financial tool that lets projects be financed through real assets and shared risk, which could work better for sustainable development. This paper presents a comparative analysis of Nigeria’s financial and regulatory system with countries that have more developed, though largely asset-based, Sukuk markets, including Malaysia, Indonesia, and the United Arab Emirates. It studies their laws, market setup, and project funding, using a qualitative comparative regulatory analysis supported by secondary data on Sukuk, infrastructure spending, and market trends. The study finds that Nigeria faces challenges such as fragmented regulations, limited market activity, and weak links between project revenues and financing. The benchmark countries show stronger legal frameworks, better Shari’āh governance, and clearer links between sustainable finance policies and infrastructure projects. This research contributes by showing how lessons from these countries can guide Nigeria in improving its approach, suggesting policy changes and better project design to make Sukuk a more effective tool for funding sustainable transport. This study combines practical policy ideas with Islamic finance principles to give insights that could help Nigeria build transport infrastructure in a way that is financially sound and socially responsible.

Keywords: Asset-Backed Sukuk; Sustainable Transportation Infrastructure; Comparative Regulatory Analysis; Islamic Finance; South West Nigeria