The Securities and Exchange Commission has reiterated its objective to list 50 Shari’ah-compliant items by 2025, with a total market value of over N5 trillion.
According to The Times, the Executive Commissioner of Operations, Mr. Dayo Obisan, represented the Director-General of the SEC, Mr. Lamido Yuguda, at a workshop organized in Abuja for indigenous Shariah talent with a focus on the non-interest capital market – level II.
He emphasized during the event that the revised Capital Market Masterplan (2021–2025) seeks to accomplish 100 retail Shariah-compliant products and draw more than one million direct investors in such products. This is part of the non-interest capital market section of the plan.
Mr Yuguda emphasized the commission’s dedication to accomplishing these lofty goals, with a focus on capacity building in particular.
In order to effectively implement Sharia-compliant projects and ultimately improve the NICM market, this involves cultivating trustworthy specialists who can use Sharia best practices.
According to the DG, the commission would keep utilizing its subsidiary, the Nigerian Capital Market Institute, particularly when creating effective non-interest finance programs that are anticipated to support capacity-building and sharia-compliant goods and procedures.
He emphasized the key distinction between conventional finance and non-interest finance, namely the latter’s use of Shariah principles.
Mr. Yuguda emphasized the robust investor demand for NICM products, which was demonstrated by the previous years’ oversubscription of the FGN and corporate Sukuk. Insights into the goals and structure of the session were also shared by him.
“As we begin Level II, the remaining modules on Shariah Contracts will be thoroughly examined beginning today, while modules on Shariah Issues Relating to Non-Interest Capital Market Principles and Operation of the Sukuk and Equity Markets will be covered in the following days.”
He stated once more that Level II’s objective is to strengthen participants’ comprehension of the theoretical and practical facets of the NICM.
Mr. Yuguda emphasised the noteworthy advancements gained in this area, which are demonstrated by Nigeria’s position of 13th on the Global Islamic Finance Development Indicator 2022, surpassing countries like Bangladesh and Turkey.
As an alternative to conventional interest-based financial systems, the Non-Interest Finance Sector has grown gradually into a unique industry within the larger financial landscape, which he also highlighted.
