The Securities and Exchange Commission (SEC) has, once again, demonstrated its unwavering commitment to a visionary goal: the achievement of 50 listings of Shari’ah-compliant products with a combined market capitalization of approximately N5 trillion by 2025.
The ambition of this mission was reiterated by Mr. Lamido Yuguda, the Director-General of the SEC, during a recently held capacity-building workshop in Abuja. The event was specifically tailored to enhance the skills and expertise of local Shariah talent specializing in the non-interest capital market – level II.
At the workshop, Mr. Dayo Obisan, the Executive Commissioner of Operations, represented Mr. Yuguda and underlined the SEC’s aspirations for the non-interest capital market (NICM) segment as part of the revised Capital Market Masterplan (2021 – 2025). The main objective of this segment is to achieve a remarkable milestone of 100 retail Shariah-compliant products and attract over one million direct investors to participate in these innovative offerings.
The SEC’s commitment to these ambitious targets is resolute, with a keen focus on capacity building. This dedication involves the nurturing of reputable professionals who possess the expertise to apply Shariah principles effectively. This is crucial for facilitating the sound implementation of Sharia-compliant initiatives, which, in turn, aims to enrich and elevate the NICM space.
Mr. Yuguda further expressed the SEC’s dedication to achieving these targets by leveraging the resources of its subsidiary, the Nigerian Capital Market Institute. This includes the development of comprehensive programs centered around Non-Interest Finance. Such programs are expected to promote capacity-building and the implementation of sharia-compliant products and processes, fostering a climate of innovation and progress within the non-interest capital market.
One key differentiator between conventional finance and Non-Interest Finance, as emphasized by Mr. Yuguda, is the application of Shariah principles in the latter. He underscored the significance of this distinction by stating, “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 essential difference implies that the NICM’s success is intricately linked to the expertise of professionals well-versed in Islamic commercial jurisprudence, also known as Fiqhul Mu’amalat Al-Maliyya.
The primary goal of the workshop is to expedite the development of experts within the field of Non-Interest Finance, with a particular emphasis on the non-interest capital market. Mr. Yuguda affirmed this by saying, “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.”
One of the aspects that Mr. Yuguda shed light on during the workshop was the strong investor appetite for NICM products, exemplified by the oversubscription of the Federal Government of Nigeria (FGN) and corporate Sukuk issuances in previous years. This enthusiasm from the investing public highlights the growing demand for Shariah-compliant investment opportunities.
The workshop’s structure and objectives were discussed by Mr. Yuguda, who mentioned, “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.” This progressive approach underscores the depth and breadth of the training, designed to provide participants with a comprehensive understanding of both the theoretical and practical aspects of the NICM.
Equipped with this knowledge, workshop participants are poised to offer valuable Shariah advisory services for the Islamic Finance Industry, particularly in the context of the Non-Interest Capital Market’s operations and their adherence to Shariah principles and rulings.
Moreover, Mr. Yuguda proudly highlighted the significant progress made in
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate