The Securities and Exchange Commission (SEC) has stated that the market value of non-interest products in Nigeria could potentially reach N5 trillion within the next two years. The SEC has set targets of 50 listings of Shari’ah-compliant products and a combined market capitalisation of at least N5 trillion by 2025, expressing confidence in their achievability. The Director-General of the SEC, Mr. Lamido Yuguda, emphasized the commitment to nurturing professionals in the non-interest market and leveraging Sharia principles to facilitate sound implementation of Sharia-compliant initiatives.
Key Points:
- The SEC envisions the market value of non-interest products in Nigeria to reach N5 trillion in the next two years, with targets of 50 listings of Shari’ah-compliant products and a combined market capitalisation of at least N5 trillion by 2025.
- The SEC aims to develop Nigeria’s capacity in the non-interest market by nurturing professionals well-versed in Sharia principles.
- The Commission plans to leverage its subsidiary, the Nigerian Capital Market Institute, to develop robust programs around non-interest finance, promoting capacity-building and Sharia-compliant products and processes.
- The SEC emphasizes that non-interest capital market relies on experts in Islamic commercial jurisprudence (Fiqhul Mu’amalat Al-Maliyya).
- The non-interest capital market segment of the revised Capital Market Masterplan (2021 – 2025) targets 100 retail Shariah-compliant products and over one million direct investors in Shariah-compliant products.
Analysis: The SEC’s projection of the non-interest market value reaching N5 trillion within two years is indicative of the growing acceptance and popularity of Sharia-compliant financial products in Nigeria. The Commission’s emphasis on nurturing professionals well-versed in Sharia principles reflects the commitment to fostering expertise in the non-interest market. By leveraging the Nigerian Capital Market Institute, the SEC aims to build a strong foundation for the development of Sharia-compliant products and processes. This initiative is in alignment with the broader goals outlined in the revised Capital Market Masterplan, which seeks to promote inclusivity and diversity in the Nigerian capital market.
