The Securities and Exchange Commission (SEC) Nigeria has reiterated its commitment to achieve 50 listing of Shari’ah-compliant products in the capital market with a combined market capitalisation of at least N5 trillion by 2025.
The commission’s Director-General, Mr. Lamido Yuguda, who restated the commitment at a “Capacity Building Workshop for local Shariah Talent for Non-interest Capital Market – Level II” in Abuja, disclosed that the Non-Interest Capital Market (NICM) segment of the revised Capital Market Masterplan (2021-2025), targeted 100 retail Shariah-compliant products and over one million direct investors in Shariah-compliant products.
To achieve that target, he said that the commission had resolved to redouble its developmental efforts, especially in capacity building that nurtures reputable professionals to leverage Sharia best practices in facilitating the sound implementation of Sharia-compliant initiatives with the ultimate aim of deepening the NICM space.
Yuguda, who was represented at the forum by the Executive Commissioner, Operations, Mr. Dayo Obisan, maintained that the capital market regulatory commission would continue to leverage its subsidiary, the Nigerian Capital Market Institute, especially in developing robust programmes around Non-Interest Finance. which are expected to promote capacity-building and sharia-compliant products and processes.
He explained: “As you are all aware, the fundamental difference between conventional finance and Non-Interest Finance is the application of Shariah principles in the latter. This simply means that NICM cannot exist without experts in Islamic commercial jurisprudence (Fiqhul Mu’amalat Al-Maliyya).
“The objective of this workshop, therefore, is fast-tracking the development of experts for the Market. We believe this will enhance the development of our local Sharia talent, not only for the Nigerian Capital Market but also for the Nigerian Financial system in general.
“The level of activities in the Non-Interest capital market that we are currently experiencing in Nigeria affirms the overwhelming acceptance of NICM products by different classes of investors, which portrays a strong appetite for these class of assets as evidenced by the over-subscription of the FGN and corporate Sukuk issued in previous years.
“The Level 1 segment of this important Workshop, which was conducted in December 2022, covered the basic areas of Financial Market Structure and Operations of the Capital Market and three modules from Shariah Principles and Contracts Relating to Non-Interest Capital Markets.
“As we dive into Level II, the remaining modules relating to Shariah Contracts will be extensively discussed starting today, while modules on Shariah Issues Relating to Non-Interest Capital Market Principles, and Operation of the Sukuk and Equity Markets shall be treated in the coming days”, the SEC boss added.
While clarifying that the Level II workshop was aimed at consolidating participants’ understanding of the theoretical and practical aspects of the NICM, the investment expert expressed optimism that through “this training and subsequent ones to come, the participants would undoubtedly have the potential to provide Shariah advisory services for the Islamic Finance Industry, particularly the Non-Interest Capital Market’s operations as it relates to Shariah principles and rulings.”
He recalled that significant progress recorded in this area was evidenced by the last ranking of Nigerian Islamic Finance in 13th place on the Global Islamic Finance Development Indicator 2022, ahead of countries like Bangladesh and Turkey.
Yuguda pointed out that the Non-Interest Finance Sector was gradually evolving and had the potential of becoming a distinct segment within the broader financial landscape, offering alternatives to traditional interest-based financial systems.
