By 2025, 50 listings of Shariah-compliant products are expected, with a target market capitalization of at least N5 trillion, according to the Securities and Exchange Commission’s updated Capital Market Masterplan (2021–2025).
Lamido Yuguda, the director general of the SEC, said this yesterday in Abuja at the start of a three-day workshop on the non-interest capital market.
The non-interest capital market (NICM), according to Yuguda, who was represented by the SEC’s Executive Commissioner in charge of operations, Dayo Obisan, has set new goals, including 100 retail Shariah-compliant products and one million or more direct investors in Shariah-compliant products with institutional investors investing at least N5 trillion.
Yuguda claims that the Commission allocated a section of its 10-year (2015-2025) Capital Market Masterplan to the swift development of the market in the financial system in recognition of the NICM’s potential for economic growth.
He emphasized that the workshop was in accordance with the realization of the specific purpose and that the master plan set forth clear strategic objectives for the development of the market, one of which is the “encouragement of the development of stakeholders.”
The stride and significant achievements recorded by the masterplan, he said, were evidenced by the last ranking of Nigerian Islamic Finance as 13th on the global Islamic Finance Development Indicator 2021, showing assets under management valued at N2.3 billion, which is higher than countries like Bangladesh and Turkey.
“As you may be aware, the major difference between conventional finance and non-interest finance is the application of Shariah principles,” he said.
He further said: “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 the country’s populace. This shows a strong appetite for other alternative forms of investments. Recently, the market witnessed the entrance of institutions offering non-interest capital market services/products and the oversubscription of the FGN and corporate Sukuk further buttresses the need for this workshop to encourage the development of Shariah experts for the market.”