Revised Capital Market Masterplan Proposes N5trn Shariah Products By 2025

Securities and Exchange Commission (SEC) has said that the revised edition of Capital Market Masterplan (2021 – 2025) that was recently launched has a projection of 50 listings of Shariah compliant products with a market capitalisation of at least N5 trillion by year 2025.

The non-interest capital market has a target to ensure 100 retail Shariah-compliant products, with a projection of one million or more direct investors in Shariah-compliant products with at least N5 trillion investment by institutional investors in Shariah compliant products.

Director-general of SEC, Mr. Lamido Yuguda said the new responsibilities has made promoting capacity-building programmes, such as workshop on Shariah-compliant processes and products to become necessary.

Yuguda made the remarks during the opening of a three-day capacity building workshop for local Shariah talent for Non-Interest Capital Market held at the SEC head office in Abuja, yesterday.

Yuguda who was represented by the SEC’s executive commissioner operations, Mr. Dayo Obisan, said the commission dedicated a component in its 10-year (2015-2025) masterplan for the speedy development of the market in the financial system.

Yuguda said the masterplan provides clear strategic objectives for the development of the market, one of which is the “encouragement of the development of stakeholders for the Market.”

The stride and significant achievements recorded by the masterplan he said, is evidenced by the last ranking of Nigerian Islamic finance in 13 place on the global Islamic finance development indicator 2021, with the assets under Management valued at N2.30 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. This simply means that Non-Interest Financial Market cannot exist without experts in Islamic commercial jurisprudence (FiqhulMu’amalat Al-Maliyya).

“Therefore, this Workshop will help in fast-tracking the development of experts for the Market. We believe that it would be a magic lamp for developing our local Sharia talent, not only for Nigerian Capital Market but for the Nigerian Financial system in general.

“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.”