The Securities and Exchange Commission (SEC) has has restated that it hopes to achieve 50 listings of Shari’ah-compliant products with a combined market capitalisation of approximately N5 trillion by 2025.
Executive Commissioner of Operations, Dayo Obisan, gave the assurance at at a capacity-building workshop held in Abuja for local Shariah talent specialising in the non-interest capital market – level II.
He pointed out that the non-interest capital market (NICM) segment of the revised Capital Market Masterplan (2021 – 2025) aims to achieve 100 retail Shariah-compliant products and attract over one million direct investors in such products, saying the commission remains committed to achieving these ambitious targets.
Obisan said this involves nurturing reputable professionals capable of applying Sharia best practices to facilitate the sound implementation of Sharia-compliant initiatives, ultimately aiming to enhance the NICM space.
He assured that the commission would continue to leverage its subsidiary, the Nigerian Capital Market Institute, especially in developing robust programmes around Non-Interest Finance which are expected to promote capacity-building and sharia-compliant products and processes.
The executive commissioner underscored the fundamental difference between conventional finance and non-interest finance, which is the application of Shariah principles in the latter.
“As you are all aware, the fundamental difference between conventional finance and Non-Interest Finance is the application of Shariah principles in the latter.
“This simply means that NICM cannot exist without experts in Islamic commercial jurisprudence (Fiqhul Mu’amalat Al-Maliyya).”
“The objective of this workshop, therefore, is fast-tracking the development of experts for the Market. We believe this will enhance the development of our local Sharia talent, not only for the Nigerian Capital Market but also for the Nigerian Financial system in general.”
He pointed out the strong investor appetite for NICM products, as evidenced by the oversubscription of the FGN and corporate Sukuk issued in previous years. He also provided insights into the workshop’s structure and objectives.
“As we dive into Level II, the remaining modules relating to Shariah Contracts will be extensively discussed starting today, while modules on Shariah Issues Relating to Non-Interest Capital Market Principles, and Operation of the Sukuk and Equity Markets shall be treated in the coming days.”
He reiterated that Level II aims to consolidate participants’ understanding of the theoretical and practical aspects of the NICM.
“Armed with this training and subsequent ones to come, the participants would undoubtedly have the potential to provide Shariah advisory services for the Islamic Finance Industry, particularly the Non-Interest Capital Market’s operations as it relates to Shariah principles and rulings,” he added.
