SEC Aims for 50 Shari’ah-Compliant Products Worth N5trn by 2025
By Patience Ikpeme
The Securities and Exchange Commission (SEC) in Nigeria has set a target to have 50 Shari’ah-compliant products listed on the exchange with a combined market capitalisation of at least N5 trillion by 2025.
Shari’ah-compliant products are financial products that adhere to Islamic principles. The SEC is focusing on the Non-Interest Capital Market (NICM) segment, which is part of its revised Capital Market Masterplan.
The NICM segment aims to have 100 retail Shari’ah-compliant products and over one million direct investors in Shari’ah-compliant products.
The Director-General, SEC, Mr. Lamido Yuguda, who was represented by the Executive Commissioner Operations, Mr. Dayo Obisan at a “capacity building workshop for local Shariah talent for non-interest capital market – level II,” in Abuja said “Non-Interest Capital Market (NICM) 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”.
The SEC he said aims to achieve these targets by redoubling its efforts in developmental initiatives, particularly in capacity building for professionals in the Islamic finance industry.
The Commission plans to leverage its subsidiary, the Nigerian Capital Market Institute, to develop programmes that promote capacity building and the growth of Shari’ah-compliant products and processes.
The Director-General of SEC emphasized the importance of experts in Islamic commercial jurisprudence (Fiqhul Mu’amalat Al-Maliyya) in the development of the NICM.
The capacity building workshop is aimed at fast-tracking the development of professionals in the market who can provide Shariah advisory services for the Islamic finance industry.
The SEC highlighted the strong appetite for Shari’ah-compliant assets in Nigeria, as evidenced by the oversubscription of government and corporate Sukuk (Islamic bonds) in previous years.
The workshop aims to enhance participants’ understanding of both the theoretical and practical aspects of the NICM.
The SEC also mentioned that Nigeria’s Islamic finance sector has made significant progress, ranking 13th on the Global Islamic Finance Development Indicator 2022, ahead of countries like Bangladesh and Turkey.
The Non-Interest Finance Sector, which includes Shari’ah-compliant products, has become a distinct industry within the broader financial landscape in Nigeria, offering alternatives to traditional interest-based financial systems.
