SEC, Kano Partner To Deepen Non-Interest Capital Market

TO unlock the economic potentials of the Nigerian capital market across the states, the Securities and Exchange Commission (SEC) has partnered the Kano State government to deepen the penetration of non-interest segment of the market.

The effort, it is believed, would enable millions of Nigerians and other people of faith invest their savings in ‘an ethical way.’

The Director General of the Commission, Mounir Gwarzo, during a regional roundtable meeting in Kano, said, “While most people identify capital markets as an important source of medium-to-long term capital flow, there is also an amazing potential of capital markets to serve as catalyst for financial inclusion.”

To achieve this objective, Gwarzo said, the Commission, under a regional arrangement, visited selected states across the country to determine areas that have potentials to drive Nigeria’s economic development, and organised round table discussions with critical stakeholders.

According to him, “Our focus for this roundtable is on Sukuk, one of the most important components of the Islamic financial system. The global Sukuk market continues to witness remarkable growth since the 2008 global financial crisis, as annual issuances have grown from $15b in 2008 to almost $120b in 2014.”

He noted that last year was widely considered a landmark year for Islamic finance, especially with the debut of Sukuk issuances by countries such as the UK, Hong Kong, Senegal, South Africa and Luxembourg, adding that, “the year witnessed continued strong interest from key markets of Malaysia, Saudi Arabia and United Arab Emirates (UAE), as well as, emerging markets like Turkey and Indonesia.  There is no doubt that the Sukuk market is emerging on a global scale as a viable alternative source of funding. “

The state governor, Dr. Abdulahi Umar Ganduje, assured that the state would do everything humanly possible to see that it partners the Commission for the overall benefit of Kano citizens.

Kano government officials disclosed that there are concerted efforts geared towards sustaining the collaboration between the SEC and Kano State government in promoting non-interest capital market.

During the workshop, Ganduje said he was excited about the partnership with the Commission, lauding the commissions’ drive for financial inclusion policy.

“Non-interest capital market offers products that are bound to ensure financial inclusion among the vast majority of Kano State investing public, who are not interested in conventional capital market products. The reason for shying away from conventional products is because of interest elements and other such features that do not appeal to adherents of Islamic religion,” said Ganduje.