E-Financial
SEC says Nigeria’s Potential for Islamic Finance Jurisdiction Outstanding
The Securities and Exchange Commission (SEC) has said Nigeria has the potential to join the leading global Islamic finance jurisdictions. Mr. Lamido Yuguda, Director General, SEC, said this when the Commission in collaboration with the Islamic Financial Services Board (IFSB), hosted the inaugural SECN-IFSB International Forum 2023, in Abuja.
The event brought together leaders and stakeholders fostering discussions, collaboration aimed at further deepening the NICM in Nigeria. Speaking at the first day of the SECN-IFSB International Forum on Non-Interest Capital Markets, Yuguda set the stage for insightful conversations and a deep dive into global and regional trends in non-interest capital markets.
He expressed the belief that “Nigeria has the potential to join the leading global Islamic finance jurisdictions when we deal with challenges such as inadequate awareness, regulatory harmonisation, and enactment of legislations that enhance legal certainty and clarity similar to what prevails within the conventional financial architecture.”
In similar fashion, Dr. Bello Lawal Danbatta, Secretary-General, IFSB, in his keynote address, commended SEC Nigeria and the government for their dedication to cultivating a resilient non- interest capital market.
“Nigeria’s Non-Interest Capital Market stands as a harmonious testament to financial innovation and progress, seamlessly weaving together the threads of ethical finance and conventional wisdom.
“The IFSB is honoured to be contributing our efforts, paired with the visionary leadership of the SEC and the Government at this stage that resonates with international regulators, market players, and policymakers – to cultivate a dynamic ecosystem where knowledge blossoms, preferences flourish, and inclusivity thrives,” he said.
In his remarks, Mr. Wale Edun, the Honourable Minister of Finance and Coordinating Minister for the Economy underscored the significance of non- interest capital markets in Nigeria’s economic landscape and the promotion of financial inclusion.
The minister highlighted the necessity for alternative financing mechanisms that prioritise equity participation over interest bearing financing models, emphasising that this approach is crucial for addressing the global debt crisis and fostering swift and inclusive growth.
A pivotal moment during the forum was the signing of a Memorandum of Understanding (MoU) between SECN and IFSB, solidifying closer collaboration, support, and the exchange of information, research, development, training, and education. The historic agreement outlines a framework for the enhancement of Shariah-compliant non-interest capital markets in the region.
The event also witnessed the launching of IFSB’s Annual Report, developed to provide a comprehensive overview of the international standard-setting organisation’s operations, accomplishments, and progress towards promoting the stability and growth of Islamic finance globally.
The forum’s discussions delved into crucial market developments and opportunities, with a particular focus on global and regional trends on non interest capital markets, sustainable green and ESG sukuk, and the role of non- interest capital market instruments in infrastructure financing.
Key recommendations include enhancing Non-Interest Capital Markets (NICM) in Nigeria through measures such as increasing awareness, establishing legal frameworks for infrastructure funding, enacting legislation for Islamic Capital Markets (ICM), providing capacity building for scholars, addressing regulatory bottlenecks, fostering collaboration among stakeholders, and leveraging technology for financial inclusion.
The discussions underscore the significance of uniform standards, public awareness, and targeted strategies to deepen the takaful sector. Moreover, there were recommendations for regular coordination meetings, the establishment of a think-tank, collaboration with academia, capacity building for conventional institutions, and exploration of innovative financing models for infrastructural projects.
The sessions showcased a notable line up of participants, including representatives from institutions such as the Central Bank, AMF-UMOA, NAICOM, Nigeria Deposit Insurance Corporation, Debt Management Office, National Pension Commission, Investment and Securities Tribunal (IST), and Financial Regulation and Advisory Council of Experts (FRACE).
Leadership figures from capital market trade groups, operators, industry players, and members of the press also actively contributed to the discussions. As drivers of sustainable and innovative Islamic finance practice, the IFSB and SECN conducted the 5th Innovation Forum which saw the convergence of industry players and other stakeholders discussing the latest developments in innovation in Islamic finance.
Sessions explored digital innovation, fintech’s role in harnessing shariah-compliant non-interest finance for financial inclusion, and regulatory issues.
E-Financial
CAC Says Operating PoS without Registration is Criminal Offence
Corporate Affairs Commission (CAC) has said that all financial technology operators (Fintechs) must register with the commission before July 7, 2024, noting that operating without registration is a crime according to the provisions of the law.
Hussaini Magaji (SAN), registrar general of the Commissio, stated this at the inauguration for the centre for bulk registration of Point of Sale (PoS) operators on Wednesday.
Magaji said, “It is the requirement of the law and the guidelines which Fintechs mandate PoS operators while obtaining their machines as outlined by the CBN to register with the CAC. Therefore, operating a PoS without registering with the CAC is a crime in Nigeria and the operator ought to be jailed.
“CAC on our part are enforcing the provisions of the law which mandates every legitimate business to register with the commission either as individual, business or merchant, and the PoS operators must register, and what we are doing now is to enforce parts of the provisions of the Companies and Alllied Matters Act (CAMA).”
Speaking further, he said, “CAC was asked to penalise PoS operators who are operating without registration with a N200 form. But because of the president’s position on encouraging small businesses, we agreed that no one should be penalized, which is why we have put a time limit on a date because we have had this sensitisation since December, and by July 7, 2024, we hope to close.”
Magaji added that the registration of all POS merchants and agents across the country would go a long way in reducing crime in the country.
He said, “We have a situation where ransom is paid with POS terminals, so with the registration, we will bring out the people whose machines were used to perpetrate the crime, because the CAC will capture all your information.”
He further noted that the registration centre would be open for 24 hours for Fintechs that might want to register manually, adding that the CAC had already created a structure for the Fintechs on the commission’s portal for ease of registration, where the certificate would be automatically generated and sent to their platform. CAC Opens Centre for Registration of PoS Operators
E-Financial
CBN Unveils List of Licensed Deposit Money Banks
Central Bank of Nigeria (CBN) has released the list of licenced Deposit Money Banks operating in the country.
Providing insights into the banking landscape in Nigeria, the list was made public on the CBN’s official website.
Banks with international authorisation include Access Bank Limited, Fidelity Bank Plc, First City Monument Bank Limited, First Bank Nigeria Limited, Guaranty Trust Bank Limited, United Bank of Africa Plc, and Zenith Bank Plc.
Commercial banks with national authorisation include Citibank Nigeria Limited, Ecobank Nigeria Limited, Heritage Bank Plc, Globus Bank Limited, Keystone Bank Limited, Polaris Bank Limited, Stanbic IBTC Bank Limited, Standard Chartered Bank Limited, Sterling Bank Limited, Titan Trust Bank Limited, Union Bank of Nigeria Plc, Unity Bank Plc, Wema Bank Plc, Premium Trust Bank Limited and Optimus Bank Limited.
Commercial banks with regional licences are Providus Bank Limited, Parallex Bank Limited, Suntrust Bank Nigeria Limited, and Signature Bank Limited.
Players in the non-interest banking sector with national authorisation include Jaiz Bank Plc, Taj Bank Limited, Lotus Bank Limited, and Alternative Bank Limited.
In the merchant banking category, the apex banks listed, are Coronation Merchant Bank Limited, FBN Merchant Bank Limited, FSDH Merchant Bank Limited, Greenwich Merchant Bank Limited, Nova Merchant Bank Limited, and Rand Merchant Bank Limited.
The financial holding companies listed were Access Holdings Plc, FBN Holdings Plc, FCMB Group Plc, FSDH Holding Company Limited, Guaranty Trust Holding Company Plc, Stanbic IBTC Holdings Plc, and Sterling Financial Holdings Limited.
The Mauritius Commercial Bank Representative Office (Nigeria) Limited was listed as the sole representative office.
E-Financial
SEC Bans to Person-to-Person Cryptocurrency Trading to Protect the Naira
Securities and Exchange Commission (SEC) said that it will prohibit person-to-person (P2P) cryptocurrency trading in the Naira, aiming to safeguard its local currency from further depreciation and market manipulation.
This decision comes amidst concerns over the manipulation of the naira’s exchange rate by speculators operating within the P2P crypto trading sector.
Emomotimi Agama, director general, SEC, disclosed during a meeting with fintech professionals that new regulations targeted at crypto exchanges, digital asset custodians, and other sectors of the cryptocurrency industry would be introduced shortly.
The upcoming regulatory changes come amid growing concerns over the impact of cryptocurrency on the naira’s exchange rate.
Despite these developments, Agama expressed openness to dialogue with industry stakeholders.
He stressed the importance of cooperation in implementing new regulations to safeguard the crypto space.
Agama’s proactive engagement aims to reassure stakeholders unsettled by recent events, including crackdowns on global cryptocurrency exchanges like Binance.
SEC move to ‘delist’ the local currency is part of broader efforts to regulate the crypto industry. Nigeria’s decision reflects a broader global debate about how to regulate cryptocurrencies effectively.
Finding the right balance between oversight and innovation will be key to shaping a healthy crypto ecosystem that benefits everyone.
The aim is to stop people from manipulating the naira’s value.
While this sounds good, some worry it could limit access to cryptocurrencies for everyday Nigerians who rely on these platforms.
Balancing regulation and innovation is tricky. Regulation is important to protect people and ensure fair markets.
But it’s also important not to stifle new ideas. Cryptocurrencies offer new ways of doing things and can help people financially.
The challenge is to make rules that encourage this while also dealing with problems like fraud.
- News3 days ago
Nigeria Seeks Alliance with Sweden to Strengthen Digital Economy
- Telecom3 days ago
Nigeria May Re-introduce Telecom Tax to Obtain new $750m World Bank Loan
- Telecom3 days ago
Google and African Union Partner to Launch #DiscoverMyAfrica
- E-Financial3 days ago
CBN Orders Banks to Charge 0.5 Percent Cybersecurity Levy
- News2 days ago
Binance Alleges Request of $150m Bribe by Some Nigerian Officials
- Telecom2 days ago
SIM Boxing, And the Unboxing of Crime Syndicate
- News2 days ago
What We Can Learn from Africa’s Small Business Success Stories
- News2 days ago
Shell Nigeria Paid $1.09Bn in Taxes, Royalties in 2023