The Federal Government has set up a committee to advise on issuing the country’s first sovereign sukuk, the Securities and Exchange Commission (SEC) said on Thursday, citing the need to explore alternative funding sources.

Nigeria plans to borrow as much as $5 billion to help fund a budget deficit worsened by the slump in oil prices that has slashed revenues and weakened the naira, Reuters reported.

SEC spokesman, Nalf Abdusalam, said the new committee, including officials from the Debt Management Office (DMO), would advise on the amount to be raised, the timing and jurisdiction of the issue.

“Any time from the first week of March, the committee is expected to submit its report,” he said.

Islamic banking assets globally now exceed $1 trillion and could reach $4 trillion by 2020, analysts said.

Nigeria has asked the African Development Bank for a $1 billion budget support loan and has held “explanatory talks” with the World Bank.

Issuance of a sovereign sukuk is part of a strategic plan developed by the DMO three years ago to develop alternative sources of funding and to establish a benchmark curve for corporates to follow.