The Coordinating Minister of the Economy and Minister of Finance, Mr. Wale Edun, has called attention to equity and non-interest financing as potential remedies to the current worldwide debt problem.
Edun made the statement on Wednesday during the inaugural international event on non-interest capital markets in Abuja, which was co-hosted by the Securities and Exchange Commission (SEC) and the Islamic Financial Service Board (IFSB).
The importance of Nigeria capitalising on the vast resources and promising potential in the stock and non-interest markets was stressed by him.
In order to maintain President Bola Tinubu’s inclusive growth plan, Edun emphasised the significance of embracing green projects backed by equity while addressing the gathering.
He emphasised that funding environmentally friendly initiatives must be prioritised in order to reduce the national debt service ratio, which is now higher than its income ratio. The forum’s primary objective, as stated by SEC Director-General Mr. Lamido Yuguda, was to support the growth of Nigeria’s non-interest financing sector.
Considering that Islamic finance is projected to reach $2.9 billion by the end of 2022, Yuguda stressed the need of growth and mentioned that Nigeria only makes up 0.9% of the worldwide non-interest industry.
International Federation of Savings and Loan Associations Secretary-General Dr. Bello Danbatta is hopeful that Nigeria will take the lead on the African continent in developing non-interest capital markets.
Through non-interest capital markets, he saw possibilities to revitalise sectors like education and textiles. The commitment of the Central Bank of Nigeria (CBN) to collaborate with stakeholders to support development in the sector was reaffirmed by Dr. Olayemi Cardoso, who was representing the CBN.
The Nigeria Deposit Insurance Corporation’s Bello Hassan and the National Insurance Commission’s Sunday Thomas were among the prominent personalities that underlined the need for policy measures to expand the non-interest capital market.
At the end of the forum, the SEC and the IFSB signed a Memorandum of Understanding (MoU), pledging to work together to strengthen the market and boost its growth.