The Securities and Exchange Commission (SEC) has said that the Non Interest Capital Market has so much potential in Nigeria as it has the prospect of attracting a large pool of untapped investor base who have apathy to conventional instruments, to participate in capital market as well as the existing investors who seek to diversify their portfolio.
Director General of the SEC, Mr. Lamido Yuguda stated this at a Joint IFSB/SEC Nigeria Virtual Seminar on Investor Protection and Transparency in Islamic Capital Markets held at the Weekend.
Yuguda said the level of activity in Non-Interest (Islamic) capital market that is currently being witnessed in Nigeria affirms the overwhelming acceptance of NICM products by the investing public.
He stated that recently, the Market witnessed the entrance of institutions offering Islamic capital market services/products and also witnessed the issuances of FGN into the Sukuk market with latest issuance of FGN SUKUK oversubscribed by over 400%. This he said, further buttressed the need to enhance the SEC’s investor protection mechanism in order to ensure transparency in the market.
The SEC boss stated further that investor protection is the principal plank of regulation and transparency, a building block that enhances the growth of the capital market adding that the knowledge gap that often exists between the market Players and investors demand for more transparency, and the risks faced by investors requires reasonable level of protection by the regulator in order to build confidence and trust in the market.
