The Securities and Exchange Commission (SEC) says it has kick started a process to ensure that non-interest instruments become about 25 percent of the total Nigerian stock exchange market capitalisation in the next 10 years.
According to the Commission, the move was part a 10-year Master Plan put in place to encourage Nigerians to tap into the over $2 trillion non-interest assets currently under management globally.
Tapping into the assets would assist the nation to meet its quest to bridge existing wide between demands for infrastructural facilities and supply, as it grapples with the current effects of the fall in the price of oil on global the market.
Speaking at a day regional high-level roundtable on Non-Interest Capital Market’ in Kano, on Monday, Mounir Gwarzo, director-general, SEC, disclosed that the commission was determined to ensure that the nation maximised the huge development opportunities which Islamic finance products offers.
According to him, the commission has already put in place measures aimed at realising the set objective.
“Our role is to boost non-interest capital market product innovation so that the segment can be at least 25 percent of the overall market capitalisation. We intend to build a strong regulatory regime for non-interest products, encourage stakeholders in the non-interest capital market. In addition, we intend to ensure the emergence of Nigeria as a prominent non-interest capital market hub, both at the regional and global levels,’’ he said.
Gwarzo said in order to harness this potential, proper planning was necessary, saying, “this is why at the SEC we set up a committee of experts last year to produce a 10-year master plan.
“We are confident that our own master plan objectives will be achieved.”
Governor Abdullahi Ganduje of Kano State commended the commission for initiating the workshop, and assured that the government would give all the necessary support to enable the commission realise its dream, noting “Kano will like to be seen as a base for Islamic banking and finance for financial market development.”
Similarly, the Emir of Kano, Muhammadu Sanusi, recalled how Central Bank of Nigeria established solid structures for non-interest banking system during his tenure.
He, therefore, called on the commission to do its best to ensure effective implementation of its policies, also calling on policy makers and stakeholders to appreciate the role of non-interest capital market in bridging the gaps in the nation’s financial institutions.
The theme of the workshop was “Financing development through Islamic Capital Market – A viable alternative.”
