News
SEC DG Seeks Stakeholders Engagement to Ensure Nigeria Tap into $3.25tr Islamic Finance Industry
Lamido Yuguda, the Director General, Securities and Exchange Commission (SEC), has called for a stronger stakeholder engagement to enable Nigeria tap deeper into the Islamic finance industry currently valued at $3.5 trillion and global sukuk issuances pegged at $182.72 billion.
To realise this, Yuguda said the Commission was strongly focused on strengthening the development of the Non-Interest Finance segment in Nigeria by collaborating with the Islamic Financial Services Board (IFSB), an international standard-setting body.
The SEC boss stated these in Abuja on Wednesday at the first annual SEC-IFSB international forum on non-interest capital market.
Yuguda, while acknowledging IFSB’s pivotal roles in ensuring stability and resilience in the Islamic finance segment globally, said the body has also been of immense help to SEC Nigeria and indeed all other IFSB members in Nigeria in capacity building, technical support, and global visibility.
He revealed that the Islamic finance segment of the financial industry in Nigeria reached an estimated size of $2.9 billion as at the end of 2022, with outstanding sukuk forming the largest part at 57%, followed by Islamic banks at 42% (total assets), and the remaining 1% split between Islamic funds (total assets) and takaful (total contributions).
“This shows that the Nigerian market makes up just 0.9% of the global non-interest market, indicating the dire need for more growth. With the country boasting a large population and a significant proportion unbanked, the long-term potential for Islamic finance in Nigeria is immense.
The Non-Interest (Islamic) Capital Market in Nigeria has undergone transformational growth, becoming an integral part of our financial framework, offering a distinctive platform for ethical and Shari’ah-compliant investments.
“Since the debut of Sukuk in Nigeria in 2017, the Debt Management Office has raised almost N1 trillion to finance over 5,000 kilometres of critical roads & bridges with all such issuances oversubscribed.
The oversubscription of the most recent 6th Federal Government of Nigeria Sukuk by 435% underscores investor confidence, showcasing the strategic role of Sukuk in infrastructure development and financial inclusion.
“The Pension Industry’s Fund VI is presently not able to find enough instruments to fill its demand. This means that there is ready demand for sukuk issuances.
“Why are we not maximizing the potential. This brings us to the challenge of low awareness. This is one of the reasons for this forum and other efforts the SEC and other regulatory bodies attending this forum must continue to work towards exploring the full potential of this segment of the market.
“SEC Nigeria has a 10-year (2015-2025) Capital Market Masterplan which was revised in November 2022. The attainment of the Masterplan targets by 2025 remains a challenging distance.
These targets encompass the introduction of 100 retail Shari’ah-compliant products, the attracting at least 1 million retail investors in Shari’ah-compliant products, the securing of at least N5 trillion in investments from institutional investors in Shari’ah-compliant products, and the facilitation of 50 listings of Shari’ah-compliant products with a market capitalization of no less than N5 trillion by 2025”, he explained.
In his keynote address, Dr. Bello Lawal Danbatta, Secretary-General of IFSB noted that 2023 has been marked by a tumultuous series of events but expressed joy Nigeria and other economies showed strong resilience in the face of daunting adversities.
He added that the challenges present significant potential for the non-interest and Shariah-compliant financial services industry to drive the sustainable development agenda.
Danbatta said the optimism was hinged on the limited exposure of many non-interest financial services industry to global conflicts, gradual recovery and reopening of economies, an accelerated digital transformation process, the improved financial soundness and resilience in advancing inclusive and sustainable socio-economic growth.
“The non-interest financial system, with its emphasis on risk-sharing, asset-backed arrangements, and project-specific execution, naturally aligns with public-private partnerships in the infrastructure sector.
“Moreover, non-interest finance offers flexibility, demonstrated by the diverse structures available for those seeking financial backing. For example, it can be transformed into marketable credit instruments, such as Sukuk, linked to specific assets,” he explained.
News
Legit.ng, Shade of Life Foundation Partner to Advance Autism Awareness in Nigeria
Legit.ng recently joined forces with the Shade of Life Foundation to become a voice of autism, and drive advocacy for improved media support during Autism Awareness Month.
Conversations around media support exploration was led by Joseph Omotayo, head of Department for Human Interest Stories at Legit.ng, and Dr. Eziafakaku Nwokolo, founder and CEO of the Shade of Life Foundation,
This partnership is a response to the concerns raised by organizations like the Shade of Life Foundation about the level of support received from the media in discussing autism as a disability.
While other disabilities may receive attention, autism, with its critical developmental implications often lacks adequate representation in mainstream media.
Recognizing the importance of addressing these concerns, Legit.ng took proactive steps by integrating itself into the essence of autism awareness.
It facilitated a one-hour workshop with Dr. Nwokolo, the founder of the foundation, to deepen our understanding of autism, its various spectrums, and the language boundaries associated with it.
Other steps we took in advocating autism awareness in the media, can be seen in our attached press release.
Legit.ng believes that by amplifying the voices of autism and advocating for better media representation, we can contribute to creating a more inclusive and accepting society for all.
News
As Nigeria Struggle, Tanzania Turns off Power Plants Due to Excess Supply
While 85 per cent of Nigeria is in darkness, Tanzania, an African country has shut down five hydroelectric stations in a bid to reduce excess electricity in the national grid.
Kassim Majaliwa, prime minister, Tanzania, has said the main plant, Mwalimu Nyerere Hydroelectric Station, alone generated enough electricity to power major cities, including Dar es Salaam, the country’s commercial hub.
It is the first time Tanzania, which suffers chronic power shortages, has closed hydroelectric stations due to excess production.
“We have turned off all these stations because the demand is low and the electricity production is too much, we have no allocation now,” an official from state-run power company, Tanesco, said.
The 2,115MW Julius Nyerere Hydropower Dam is said to be almost filled with water following heavy rains that started early this year.
Meanwhile, while the country has an installed capacity of 1,938MW and the grid installed capacity of 1,899MW, Nigeria which has an installed capacity of 13,000MW is struggling to electrify 85 per cent of its electricity consumers.
News
President Tinubu Appoints Jim Ovia as Student Loan Fund Chairman
President Bola Tinubu has approved the appointment of Jim Ovia, renowned banker and businessman, as the Chairman, Board of the Nigerian Education Loan Fund.
Ovia’s appointment is contained in a State House statement titled, ‘President Tinubu appoints Jim Ovia as Chairman of the Nigerian Education Loan Fund,’ and issued on Friday by Ajuri Ngelale, special adviser to the President, Media & Publicity.
The statement noted that “Ovia is the founder of one of Nigeria’s leading banks and a respected business leader, with a surfeit of efforts and benefaction towards nurturing and empowering young Nigerians.
“He is an alumnus of Harvard Business School and holds a Master’s in Business Administration from the University of Louisiana.”
The National Student Loan Programme is a pivotal intervention that seeks to guarantee sustainable higher education and functional skill development for all Nigerian students and youths.
The Nigerian Education Loan Fund, the implementing institution of this innovation, demands excellence and Nigerians of the finest professional ilk to guide and manage.
“The President believes Mr. Ovia will bring his immense wealth of experience and professional stature to this role to advance the all-important vision of ensuring that no Nigerian student suffers a capricious end to their pursuit of higher education over a lack of funds,” the statement partly read.
Ovia’s appointment will also ensure “that Nigerian youths, irrespective of who they are, have access to higher education and skills that will make them productive members of society and core contributors to the knowledge-based global economy of this century.”
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