Islamic Finance has been described as a robust model for development financing for infrastructural development in Nigeria according to Dr. Jubril Salaudeen, Principal Partner in Secure Huda Limited.
Speaking with WebTV’s Islamic Finance Weekly, Salaudeen noted that if deployed effectively Islamic Finance could support the funding of activities that would provide employment for many Nigerians. Salaudeen acknowledged the warm reception that Sukuk bonds received during the 2017 and 2018 issuances of N100bn respectively, each Issue was oversubscribed.
Salaudeen, however. observed that most of the subscription came from corporate investors, particularly pension funds, while retail participation was low.
According to the Investment specialist there is need for more investors in the market, willing to trade Sukuk instruments rather than buy and keep.
Speaking on the proposed third Sukuk by the Federal Government of Nigeria, Salaudeen said the first thing to look at is the size of the portfolio and expand it, and secondly the performance of the Sukuk with regular reporting. He emphasized the need for public education on what the Sukuk funds are and how they will be impactful.
Giving insight into how Secure Huda Limited has been promoting Islamic banking in Nigeria and Africa, he stressed that the company has focused on three areas namely: manpower development, needed knowledge for the industry through seminars, and developing product designs not only in Nigeria but also in Ethiopia, Ghana and Kenya.
He added that the company has participated actively in the promotion of products and in road shows to highlight the impact of Islamic finance in Nigeria.
According to Salaudeen the company is taking knowledge to critical social segments by educating the retail market about products such as Takaful or Islamic insurance.
On further developments around the industry, he noted that two universities offer post graduate programmes in Islamic Finance and an institute for Islamic Finance Professionals has been established to provide professional certification and examination in the subject area.
Speaking on the outlook for 2020, the Islamic finance professional said he expects to see more capacity development and awareness in terms of Islamic finance products in Nigeria, with increasing activities from the operators-such as the banks, Takaful companies, investment companies and microfinance institutions.
“We need to take a position to make Nigeria a hub for Islamic finance in Africa” Salaudeen said.
On the proposed visit of the Islamic Development Bank President, Salaudeen believed it was an opportunity for Nigeria to showcase its achievement so far in the Islamic Finance and highlight areas where support is needed through finance, especially in the areas of human capital development.