The Securities and Exchange Commission (SEC) has confirmed its plans to partner the International Finance Corporation, (IFC) the African Development Bank (AFDB), state governments and Federal Mortgage Bank of Nigeria (FMBN) to include Sukuk option in their capital investment plans.
Sukuk is common in Islamic finance and is the equivalent of bonds, which are common in the western world since earning interest is not allowed in Islam.
Specifically, Sukuk bonds are structured to fulfill Islamic law, which prohibits charging and paying interest.
The Acting Director-General SEC, Mary Uduk, gave this hint to journalists on Friday at the end of the Commission’s Capital Market Committee (CMC) meeting in Lagos.
She said: “The next level of engagement is to work with national entities such as IFC and AFD, state governments and institutions like Federal Mortgage Bank, among others to include Sukuk option in their capital investment plans.”
This is even as she disclosed plans to partner with the Nigerian Mortgage Refinance Company on Sukuk bond to strengthen financial inclusion and for market growth and development.
Uduk explained that the report of the technical committee on non-interest capital market on the first sovereign Sukuk bond issued in 2017 showed that 1,600 retail investors invested about N5 million in the instrument.
While assuring investors and the capital market community that the new management would ensure continuity of existing policies, especially the implementation of the Capital Market 10-Year Master-Plan, the investment expert promised that the new team would leverage on the existing strategies to boost investor confidence.
Again, she restated the commission’s concern over virtual currency trading, warning investors not to invest in unapproved instruments, especially cryptocurrencies, to avoid loss of funds.