In deepening Islamic finance in Nigeria, Securities and Exchange Commission (SEC), is organising a roundtable workshop on non-interest Capital Market in encouraging state governments to explore the alternative model for financing infrastructure projects through Islamic Capital market products such as Sukuk.
The workshop with the theme, “Financing Development through Islamic Capital Market – a Viable Alternative” scheduled for October 19, 2015 in Kano.
According to the press release by the Commission, this is in line with its strategic Ten year Master Plan on Non-Interest Capital Market.
It stated, “Guests expected at the workshop include States Commissioners of Finance for Kano and Jigawa States, States Investment Companies, States Chambers of Commerce and Industries, Manufacturers Associations, SMEDAN, BUK Institute of Islamic Finance, Market Operators within the Region, Corporate Organizations and other Stakeholders.
Recently, at a round table meeting with the Lord Mayor of London, the director-general of SEC, Mr Mounir Gwarzo said the Commission is planning to grow non-interest capital market products to be 25 per cent of the overall market capitalization.
Gwarzo stated that the SEC was considering modalities for setting up a Sharia Advisory Council as a body of experts to advise on non-interest product applications.
To boost liquidity of non-interest products, SEC said, it is working with a committee to support the FMDQ platform to enable secondary market trading of the products, “We are engaging the Central Bank of Nigeria (CBN) to obtain liquidity status for non-interest products, especially the Sukuk.
SEC noted that all these efforts are hinged on the fact that Nigeria has more than 80 million Muslims compared to Malaysia’s total population of 30 million. In addition, Nigeria has a larger economy than Malaysia’s, being the largest economy in Africa.
To harness this potential, Gwarzo said SEC set up an industry-wide Committee of experts last year to produce a 10-year master plan on non-interest capital market product and their recommendations have been incorporated into the broader capital market master plan which we have begun implementing.
Originally published on www.leadership.ng