The Securities and Exchange Commission has advised corporate organisations to leverage the Islamic capital market, saying it will help create an enabling environment.
The Director-General, SEC, Lamido Yuguda, said this at the 2021 African International Conference on Islamic Finance in Abuja Wednesday, with the theme ‘Infrastructure financing, sustainability, and the future of African markets 2.0’, according to a statement.
Represented by the Executive Director, Corporate Services at SEC, Mr Ibrahim Boyi, Yuguda 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 Masterplan.
“This includes 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,” he said.
According to him, Islamic finance instruments are globally recognised as acceptable securities, with low value-at-risk due to their asset-based and project-tied investment features.
He said, “Thus, it offers financial products that are safe, competitive and attractive. Many jurisdictions have realised the potentials in Islamic finance and have positioned themselves to tap the potential benefit of such financing.
“It is noteworthy that since Islamic finance heavily relies on the Islamic capital market as an investable outlet; products such as Sukuk, Islamic REITs, Islamic Funds and Exchange-mirrored Traded Funds could all be offered for the purpose of financing infrastructure.”
Yuguda said in Nigeria, SEC had implemented a number of reforms aimed at deepening the non-interest capital market.