The Securities and Exchange Commission (SEC) says the non-interest capital market sector in Nigeria is unique and has the potential to deepen the financial system and boost the growth of the nation’s economy.
The Director General of SEC, Lamido Yuguda, disclosed this in his opening remark during a 4-day Executive Programme on Non Interest (Islamic) Capital Market (NICM) Products and Basic Accounting Treatment organised by Islamic Financial Services Board (IFSB) based in Malaysia, and the Auditing and Accounting Organization for Islamic Financial Institutions (AAOIFI) based in Bahrain.
Yuguda noted that the recent sovereign issuances of Sukuk by the Nigerian Debt Management Office (DMO), which were all oversubscribed, underscores the need to enhance the SEC’s regulatory capacity adding that the Sovereign Sukuk issuances set the benchmark for other corporates to issue Sukuk for various developmental activities in the country.
He said the SEC’s quest for in-depth knowledge for Non-Interest Capital Market products, operations, and services is further highlighted by the recent increase in market activities such as the entrance of more assets managers, investment advisers, Real Estate Investment Trusts and advisory experts among others to provide new asset classes for Nigerian investors.
Director General of SEC, Lamido Yuguda
In his words: “It is worthy of note that whilst the Non-Interest Capital Market sector in Nigeria is nascent and unique, it is a market full of potential to facilitate the objective of deepening the financial system and spurring the growth of our economy, thus, as you are aware, the SEC in its efforts to deepen the Nigerian Capital Market, developed a 10-year (2015 – 2025) master plan with various strategic recommendations, one of which is to drive the Non-Interest Capital Market segment of the market to enable it contribute not less than 25% to the total market capitalization.”