Mounir
Gwarzo, who was represented by Zakawanu
Garuba, Executive Commissioner, Corporate Services, stated that: “Our goal is to boost non-interest capital market product
innovation so that the segment can be at least a quarter (25 per cent) of the
overall market capitalization. The SEC wants to build a strong regulatory
regime for non-interest products, encourage stakeholders in the non-interest
capital market and ensure the emergence of Nigeria as a prominent non-interest
capital market hub both at the regional level and globally.”
He further
stated that the SEC was considering modalities for setting up a Sharia Advisory
Council as a body of experts to advice on non-interest product applications.
He said: “To boost liquidity of non-interest products, the SEC is working
with a committee to support the FMDQ platform to enable secondary market
trading of the products. We are also engaging the Central Bank of Nigeria (CBN)
to obtain liquidity status for non-interest products (especially the sukuk). The
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 proper planning was imperative which was “why at the SEC, we set up an industry-wide Committee of
experts last year to produce a 10-year master plan on non-interest capital
market product. Their recommendations have been incorporated into the broader
capital market master plan which we have begun implementing.”
In his
response, Alderman Alan Yarrow, the
Lord Mayor of London, pledged the United Kingdom’s government support stressing
that “two things were universally agreed on, Islamic finance
will be massive and it’s here to stay.”
Yarrow
expressed concerns that “the difficulty of defining
what Islamic finance actually is, is with different scholars and different
countries supporting different rules.”
Alderman
Alan Yarrow said there “is a huge opportunity to offer
Islamic finance as an alternative investment and finance model for both Muslims
and non Muslims alike.”
Nigeria’s
Exchange he said has a crucial role to play in that story since it is the
second largest Exchange in sub-Saharan Africa describing it as “the Gateway to African markets and as such, the whole of
Africa, to some extent, relies on Nigeria.”
The UK he
said is prepared to help Nigeria “from looking at
Nigeria’s legal framework, to helping to up the skills of your young, dynamic
and ambitious population. London has the expertise, the variety and the
capacity to help. And most of all, we offer the willingness and we stand ready
to do our bit.”
Alderman
Alan Yarrow said “there is already a thriving
partnership between the Exchanges and an excellent pipeline of Nigerian
Businesses listing in London. But in the past few years, things have been
shaken up by the arrival of non-interest finance and in particular, Islamic
Finance.”
He called on
members of the Nigerian capital and financial derivatives markets to talk to
him, and the business delegation and TheCityUK. Whether it’s about Islamic
Finance, Legal services or education, training and qualifications. That’s why
we are here. And we all look forward to helping you in whatever way we can.”
(vanguard)
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