N5 trillion in Sharia compliant products to hit the capital market by 2025


50 Sharia compliant products with a market capitalization of N5 trillion are expected to be listed between now and 2025.

This is in line with the revised edition of the Capital Market Master Plan (2021-2025) that was recently released by the Securities and Exchange Commission (SEC).

SEC Director General Mr. Lamido Yuguda said this at the opening of a three-day capacity-building workshop for local Sharia talent for interest-free capital market, held at the SEC headquarters in Abuja on Wednesday.

New goals: Yuguda, who was represented by SEC Executive Commissioner of Operations, Mr. Dayo Obisan, highlighted the new objectives of the non-interest-bearing capital market (NICM). They include the following:

  • Ensure 100 Shariah Compliant Retail Products
  • Projection of 1 million or more direct investors in Shariah compliant products with at least N5 trillion invested by institutional investors in Shariah compliant products.

Yuguda also noted that with these new responsibilities, the promotion of capacity building programs has become necessary for the NCIM.

Interest-free principal potentials: Said the Commission, recognizing the potential of the interest-free capital market for economic growth, dedicated a component of its ten-year capital market master plan (2015-2025) for rapid market development in the financial system .

Yuguda said that the Master Plan provides clear Strategic Objectives for the development of the Market, one of which is to “encourage the development of Market stakeholders” and today’s workshop is evidence of the realization of this particular objective.

The significant progress and achievements recorded by the master plan, he said, are evidenced by the latest ranking of Islamic Finance Nigeria at 13th in the global Islamic Finance Development Indicator 2021, with assets under management valued at N2.30 thousand. millions; which is higher than countries like Bangladesh and Turkey.

  • “As you may know, the main difference between conventional finance and interest-free finance is the application of Sharia principles. This simply means that the interest-free financial market cannot exist without experts in Islamic commercial jurisprudence (FiqhulMu’amalat Al-Maliyya). Therefore, this Workshop will help to accelerate the development of experts for the Market. We believe that it would be a magic lamp to develop our local Sharia talent, not only for the Nigerian capital market but for the Nigerian financial system in general.
  • “The level of interest-free capital market activities that we are currently experiencing in Nigeria affirms the overwhelming acceptance of NICM products by the country’s population. This shows a strong appetite for other alternative forms of investment. Recently, the Market witnessed the entry of institutions that offer interest-free capital market services/products and the oversubscription of the FGN and the Sukuk company, further reinforces the need for this workshop to foster the development of Sharia experts for the market”.

The SEC chief said NICM has a lot of potential in the country by attracting an untapped investor base that seems indifferent to conventional instruments, to participate in the capital market, as well as existing investors to diversify into ethical and social investing. responsible..

… N5 trillion in Sharia compliant products to hit the capital market by 2025 Read more at … Naijaonpoint.




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