Capital market: Non-interest sector can deepen financial system – Yuguda

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Nigeria’s non-interest capital market sector has been described as one that is unique and full of potential to facilitate the objective of deepening the financial system and spurring the growth of the Nigerian economy.

Director General Securities and Exchange Commission, Mr. Lamido Yuguda, who stated this in an 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 Organisation for Islamic Financial Institutions (AAOIFI) based in Bahrain, said the recent sovereign issuances of Sukuk by the Nigerian Debt Management Office (DMO), which were all oversubscribed, stresses the need to enhance the SEC’s regulatory capacity. He added that the Sovereign Sukuk issuances set the benchmark for other corporates to issue Sukuk for various developmental activities.  

He said the SEC’s quest for in-depth knowledge for Non-Interest Capital Market products, operations, and services is further underscored by the recent increase in market activities such as the entrance of more assets managers, investment advisers, Real Estate Investment Trusts, advisory experts e.tc. to provide new asset classes for Nigerian investors.    

He said, “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 percent to the total market capitalisation. 

Source: THE SUN

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