SEC to grow non-in­ter­est prod­ucts to N4.179trn

Daily Trust - - BUSINESS - From Kay­ode Ogun­wale, La­gos

The Se­cu­ri­ties and Ex­change Com­mis­sion (SEC) has re­vealed that it is plan­ning to grow non­in­ter­est cap­i­tal mar­ket prod­ucts to be 25 per cent of the over­all mar­ket cap­i­tal­iza­tion.

The mar­ket cap­i­tal­iza­tion of the en­tire prod­ucts listed on the Nige­rian stock ex­change by yesterday stood at N16.717 tril­lion, which com­prised eq­ui­ties, bonds and ex­change­traded prod­ucts.

This dis­clo­sure was made on Tues­day by the Di­rec­tor­Gen­eral of SEC, Mr Mounir Gwarzo at a round­table meet­ing with a del­e­ga­tion led by the Lord Mayor of the city of Lon­don, Al­der­man Alan Yar­row and Nige­rian reg­u­la­tors.

Gwarzo, who was rep­re­sented by Zakawanu Garuba, the Com­mis­sion’s Ex­ec­u­tive Com­mis­sioner Cor­po­rate Ser­vices, un­der­lined SEC’s goal to boost non­in­ter­est cap­i­tal mar­ket prod­uct in­no­va­tion so that the seg­ment can be, at least, a quar­ter of the over­all mar­ket cap­i­tal­iza­tion.”

The SEC, he said, aims 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 non­in­ter­est cap­i­tal mar­ket hub both at the re­gional level and glob­ally.”

SEC is al­ready 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 non­in­ter­est prod­ucts, the Com­mis­sion is work­ing with a com­mit­tee to sup­port the FMDQ plat­form to en­able sec­ondary mar­ket trad­ing of the prod­ucts. It is also en­gag­ing the Cen­tral Bank of Nige­ria (CBN) to ob­tain liq­uid­ity sta­tus for non-in­ter­est prod­ucts (es­pe­cially the sukuk).” All these ef­forts, Gwarzo ex­plained, are hinged on the fact that “Nige­ria has more than 80 mil­lion Mus­lims, com­pared to Malaysia’s to­tal pop­u­la­tion of 30 mil­lion.” He added that Nige­ria has a larger econ­omy than Malaysia’s, “be­ing largest econ­omy in Africa.”

It was with a view to har­ness­ing this po­ten­tial, Gwarzo said, that SEC set up an in­dus­try-wide com­mit­tee of ex­perts last year to pro­duce a 10-year master plan on non-in­ter­est cap­i­tal mar­ket prod­ucts. The com­mit­tee’s rec­om­men­da­tions have been in­cor­po­rated into the broader cap­i­tal mar­ket master plan, which the Com­mis­sion, Gwarzo said, has be­gun im­ple­ment­ing.

Yar­row pledged the United King­dom gov­ern­ment’s sup­port for non-in­ter­est fi­nanc­ing in Nige­ria, stress­ing that “two things were uni­ver­sally agreed on: Is­lamic fi­nance will be mas­sive and it’s here to stay.”

The Lord Mayor called on mem­bers of the Nige­rian cap­i­tal and fi­nan­cial de­riv­a­tives mar­kets to “talk to him, the busi­ness del­e­ga­tion and The City UK” on 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,” he as­sured.

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Mounir Gwarzo, SEC DG

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