The Securities and Exchange Commission (SEC), says its Capital Market Master Plan (2015-2025) is to achieve a 25 percent contribution from the non-interest market to the overall market capitalization by 2025.
Abdulkadir Abbas the Head, Securities and Investment Services, SEC gave the assurance as keynote speaker at the maiden WebTV Islamic Finance Webinar series.
Representing the Director-General SEC Nigeria, Alhaji Lamido Yuguda, he said the growth of the non-interest capital market in the country has been fueled by the increase in Sukuk bond issuances amidst a growing appetite for the instrument by local investors.
He noted that in 2004, SEC joined the IOSCO joint committee on the Islamic Capital Market in Nigeria which led to the development of several initiatives to deepen the market.
In his own contribution, Tesleem Akosile the Team Lead, Shariah Non-Compliant Risk, TAJ Bank who represented the bank’s Managing Director, Mr. Norfadelizan Abdulrahman, said there were enormous opportunities for non-interest banks to collaborate with other stakeholders, to build a vibrant Islamic finance ecosystem.
He said areas like wealth management provide opportunities for developing products for the high-net-worth individuals (HNIs) and other classes of citizens, thereby driving financial inclusion and economic empowerment.
Mrs. Adaeze Uzor-Kalu the Head, External Affairs, FMDQ Group in her presentation said Nigeria was one of the pioneering nations that has established an Islamic Finance Regulatory framework in the West African Region.
From the debt market perspective, she said the total global Sukuk market had reached $715.2bn in the first quarter of 2021 which was 3 percent higher than the fourth quarter of 2020.
In terms of prospects for developing Islamic finance through the Debt Capital Market, she highlighted the need for a standardized and robust regulatory framework for Sukuk issuance as well as the need for government and regulatory incentives to drive participation in the Islamic Finance sector, among others.
In his presentation, the CEO of Marble Capital, Mr. Akeem Oyewale, outlined the various segments that non-interest finance products could be developed and adopted such as Sukuk, Commodities, Unit Trusts, Derivatives, Equities, Mutual Funds, and Traded Funds.
Oyewale also described the Lotus Index as an enabler for investors seeking Halal-compliant stocks in the capital market.
The Vice President, Financial Markets, AFEX Nigeria, Mrs. Oluwafunto Oluwasemo, identified trade finance, inventory/working capital finance, commodity trading, and production finance as aspects in the commodities market that Islamic Finance can support.
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