The Securities and Exchange Commission (SEC) has assured that it would continue to encourage corporates to leverage on Islamic capital market by providing and ensuring an attractive enabling environment.
The director-general of SEC, Mr Lamido Yuguda, stated this at the 2021 African International Conference on Islamic Finance held in Abuja yesterday with the theme ‘Infrastructure Financing, Sustainability, and the Future of African Markets 2.0’.
Yuguda, represented by the executive commissioner Corporate Services, SEC, Mr. Ibrahim Boyi, said the commission was working assiduously with relevant stakeholders to implement recommendations for the non-interest capital market sector in line with the objectives of the 10-year Nigerian Capital Market Master plan (2015-2025) which include; developing the segment of the market to contribute at least 25 per cent of the overall capital market capitalisation by 2025, with Sukuk contributing 15 per cent of outstanding bond issuances.
Boyi said Islamic finance instruments are globally recognised as acceptable securities, with less Value-at-Risk due to their asset-based and project-tied investment features, saying that it offers financial products that are safe, competitive and attractive.
He said: “It is noteworthy that since Islamic finance heavily relies on the Islamic Capital Market (ICM) as an investable outlet, products such as Sukuk (Islamic Bond), Islamic REITs (I-REITS), Islamic Funds (I-Funds) and Exchange-mirrored Traded Funds (Islamic Equity Index) could all be offered for the purpose of financing infrastructure.