The Securities and Exchange Commission (SEC) has started working with stakeholders to develop non-interest segment of the capital market, which is expected to contribute at least 25 per cent of the overall market capitalization by 2025.

The Director General of the SEC, Mr. Lamido Yuguda stated this at the 2021 African International Conference on Islamic Finance in Abuja, Wednesday, with the theme “Infrastructure Financing, Sustainability, and the Future of African Markets 2.0”.

Yuguda, who was represented by the Executive Commissioner Corporate Services, SEC, Mr. Ibrahim Boyi said the Commission, Yuguda, said: “Thus, it offers financial products that are safe, competitive and attractive. Many jurisdictions have realized the potentials in Islamic Finance and have positioned themselves to tap the potential benefit of such financing”, he added.

“It is noteworthy that since Islamic finance heavily relies on the Islamic Capital Market as an investable outlet, products such as Sukuk (Islamic Bond), Islamic REITs (I-REITS), Islamic Funds (I-Funds) and Exchange-mirrored Traded Funds (Islamic Equity Index) could all be offered for the purpose of financing infrastructure.

“Sukuk issuances are increasingly gaining significance as a veritable mode of infrastructure financing. Consequently, a number of countries in the Sub-Saharan region of the continent – Sudan, Gambia, Senegal, South Africa, Ivory Coast, Nigeria, Mali, and Togo- have issued sovereign Sukuks to finance infrastructure”.