By Obas Esiedesa
The Director General of the Securities and Exchange Commission, SEC, Mr. Lamido Yuguda has described the non-interest capital market sector in Nigeria as one that is unique and full of potentials to facilitate the objective of deepening the financial system and spurring the growth of the Nigerian economy.
Yuguda, according to a statement by SEC on Monday stated this in an opening remark during a 4-day Executive Programme on Non Interest (Islamic) Capital Market Products and Basic Accounting Treatment organised by Islamic Financial Services Board, IFSB, based in Malaysia, and the Auditing and Accounting Organization for Islamic Financial Institutions, AAOIFI, based in Bahrain.
He noted that the recent sovereign issuances of Sukuk by the Nigerian Debt Management Office, which were all oversubscribed, stresses the need to enhance the SEC’s regulatory capacity, adding that the Sovereign Sukuk issuances set the benchmark for other corporates to issue Sukuk for various developmental activities.
Yuguda pointed out that 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.
According to him, “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) Masterplan 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% to the total market capitalization.
“Although, we can confidently report some remarkable achievements recorded in the segment, six years into the implementation of the Masterplan, the Non-interest Capital Market (NICM) segment is still facing challenges in terms of innovation, awareness, acceptance and coverage. These challenges underscore the need to provide focused training, capacity building and vigorous stakeholder engagement and awareness programs”.
Vanguard News Nigeria
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Post author: Nwafor