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FG raises N1.1tn in 6 Sukuk bonds for 124 road projects
FG raises N1.1tn in 6 Sukuk bonds for 124 road projects
The Federal Government has raised N1.1 trillion ($657.6 million) through the issuance of six Sukuk bonds, aimed at financing 124 critical road projects, covering 5,820 kilometers and spread across the six geopolitical zones.
The Director General of the Securities and Exchange Commission, Dr. Emomotimi Agama, disclosed this yesterday at the ongoing 2nd International Islamic Capital Market Conference in Karachi, Pakistan.
According to a statement from the Commission, the DG said the success rate makes the Islamic Capital Market (ICM) stand out as a resilient and innovative tool for mobilising resources.
Agama described the issuance of sovereign Sukuk since 2017 as a key pillar responsible for the growth of the ICM in Nigeria, adding that these issuances have consistently been oversubscribed, with subscription rates reaching as high as 441 per cent.
He disclosed that sub-national and corporate Sukuk issuances are also growing in Nigeria, with notable examples like Osun and Lagos states, Family Homes Ltd and TAJ Bank Plc, along with private Sukuk issuances by three other sub-nationals.
The DG said these instruments have been instrumental in funding school infrastructure, housing, and, for the first time in Nigeria, tier 1 capital for a bank, underscoring the versatility of Sukuk as a financing tool.
“Beyond Sukuk, the ICM segment in Nigeria offers diverse investment opportunities. From one registered fund in 2008, the segment currently boasts 14 registered Halal mutual funds with a net asset value exceeding N105 billion as of November 2024. The NGX Lotus Islamic Index tracks 11 Shariah-compliant equities, while Nigeria’s first Islamic Real Estate Investment Trust – ChapelHill N-REIT – highlights the potential of real estate investments.
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“The prospects for Nigeria’s Islamic finance industry are underpinned by key growth drivers, both global and domestic. Globally, demographic trends, economic diversification efforts in oil-dependent economies, and regulatory support have spurred demand for Shariah-compliant products.
“Locally, Nigeria’s large Muslim population, government-backed Sukuk initiatives, and growing investor awareness are driving market expansion. Emerging innovations in fintech also present further opportunities for market development. In that regard, the SEC registered the first Robo advisory firm in the Nigerian Capital Market in 2022. This Robo Advisor is focused on Shari’ah-compliant investments.
Agama said the success of the ICM in Nigeria is deeply rooted in its strategic focus on infrastructure financing, financial inclusion, and sustainability as the SEC’s engagement with the ICM dates back to 2004, when the SEC joined the Islamic Finance Task Force of the International Organization of Securities Commissions (IOSCO).
The SEC Boss said this commitment was followed by the issuance of Islamic fund and Sukuk Rules in 2010 and 2013, respectively, and later solidified in the Non-Interest Capital Market Master Plan (2015–2025), which outlines a 10-year roadmap for expanding the market’s depth and diversity.
According to him, “Adopted in 2015 as part of the broader Nigerian Capital Market Master Plan (2015–2025), the Non-Interest Capital Market Master Plan (NICMMP) has been central to the development of the ICM segment in Nigeria.
The document sets out a vision for the Islamic Capital Market – otherwise known as the Non-Interest Capital Market (NICM) in Nigeria – to contribute 25 per cent of total market capitalization by 2025, with Sukuk accounting for 15 per cent.
“The masterplan was further reviewed in 2021, to provide a renewed focus on deepening the ICM, through targeting 50 listings of Sharia-compliant products with a market capitalization of at least N5 trillion ($11 billion) by 2025.
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“The performance of the NICM Masterplan has been remarkable. Of the 15 initiatives outlined in the roadmap, nine had been fully implemented as of 2022, representing a 70 per cent success rate. Key achievements include improved public awareness, increased retail participation in Sukuk, and the introduction of the Non-Interest Pension Fund (Fund VI) through collaboration with the National Pension Commission (PenCom). Another key achievement was the release of guidelines for taxation of Non-Interest transactions, in collaboration with the FIRS. This solved the challenge of double taxation hindering such transactions.”
The SEC DG, however, said the growth of the ICM segment within a decade and a half has come with some challenges, including limited public awareness of Islamic finance principles, paucity of tradable instruments, and regulatory alignment across institutions. He said, “Capacity-building efforts, particularly in Shariah governance and compliance, remain critical to sustaining growth. These, of course, are critical areas the SEC is currently implementing strategies to address, with relevant stakeholders, particularly in the public and private sectors, providing targeted and effective solutions.
“Of particular interest is our ongoing effort to engage relevant stakeholders in the mortgage sector to develop Shariah-compliant housing finance solutions. This will create the needed impetus for developing Shariah-compliant asset-backed instruments to deepen our capital market further.”
As the world looks into the future, Agama stated that the opportunities are endless as Islamic finance is solving some practical challenges and needs of the Nigerian economy, such as critical infrastructure deficit, financial exclusion, low mortgage penetration, and disinterest in commercial financing opportunities due to faith-based and/or ethical concerns.
He said the increased level of activity in the Nigerian market and established benchmarks for corporates and sub-nationals portends huge benefits for ethical investors and foreign capital seeking viable and sustainable investment outlets.
“As regulators and policymakers continue to refine and expand the regulatory space, product developers are continuing to innovate and offer a variety of instruments seeking off-takers.
“This is the time to stake positions that will no doubt produce competitive returns and satisfy ethical and sustainability concerns. The table is set for investing. Foreign participants should take positions and increase stakes in tandem with domestic trends. This offers a significant opportunity to contribute to sustainable economic growth and financial inclusion in Nigeria and, by extension, the African continent,” he added.
FG raises N1.1tn in 6 Sukuk bonds for 124 road projects
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Electricity: We installed 184,507 meters, issued 50 licences in Q3, says FG
Electricity: We installed 184,507 meters, issued 50 licences in Q3, says FG
The Federal Government has recorded significant progress in Nigeria’s electricity sector with the installation of 184,507 new meters and the issuance of 50 licences, permits, and certifications during the third quarter of 2024 (Q3).
The Nigerian Electricity Regulatory Commission (NERC) revealed in its Q3 2024 report released on Friday that 184,507 meters were installed, marking a remarkable 256.01% increase compared to the 51,826 meters installed in Q2 2024.
The increased metering pushed the net end-user metering rate in the Nigerian Electricity Supply Industry (NESI) to 46.15%, up from 45.43% in Q2, a rise of 0.72 percentage points.
The installations were largely carried out under the Meter Asset Provider (MAP) framework, which accounted for 178,715 meters or 96.86% of the total. The Vendor Financed framework contributed 3,508 meters, while the DisCo Financed framework added 2,298 meters.
This development signifies a concerted effort to address challenges like estimated billing and promote consumer satisfaction across the electricity distribution value chain.
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Power sector development: 50 licences issued
To complement the surge in meter installations, NERC issued 50 licences, permits, and certifications aimed at strengthening Nigeria’s power sector infrastructure. These include:
- Six (6) new off-grid generation licences with a combined capacity of 30.06 MW.
- One (1) renewal of an on-grid generation licence with a gross capacity of 39 MW.
- Two (2) new electricity trading licences.
- Eleven (11) captive generation permits with a total gross capacity of 63.36 MW.
- One (1) registration certificate for a mini-grid.
- Seven (7) certifications for Meter Service Providers.
- Twenty-two (22) permits for Meter Asset Providers.
These licences are expected to encourage investments, improve power supply, and expand access to renewable and off-grid energy solutions, especially in rural areas.
Key Implications for the Power Sector
The surge in meter installations and issuance of licences marks a pivotal moment in Nigeria’s electricity sector. By prioritizing metering through initiatives like MAP, the government is tackling the pervasive problem of estimated billing, which has long plagued electricity consumers.
Furthermore, the rise in off-grid and mini-grid licences underscores a growing shift towards renewable energy and decentralized power solutions, vital for enhancing energy access in underserved regions.
A Promising Outlook: These advancements highlight the Federal Government’s commitment to reforming Nigeria’s power sector and creating an enabling environment for both consumers and investors.
With metering and licensing activities gaining momentum, stakeholders anticipate further progress in Q4 2024, laying the foundation for a more reliable, sustainable, and inclusive energy sector.
Electricity: We installed 184,507 meters, issued 50 licences in Q3, says FG
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Ibadan stampede: Ooni reacts after arrest of ex-wife
Ibadan stampede: Ooni reacts after arrest of ex-wife
The Ooni of Ife, Oba Adeyeye Ogunwusi, has encouraged his ex-wife, Naomi Ogunseyi, and radio owner, Oriyomi Hamzat, not to be discouraged following the tragic stampede at a Yuletide ceremony for children in Ibadan, Oyo State, which claimed 32 lives.
The monarch also pledged support for the families of the victims and called for immediate measures to prevent such incidents in the future.
His comments followed the arrest of his ex-wife by the police and were made in a statement issued by the Director of Media and Public Affairs at the Ooni’s Palace, Moses Olafare.
In his statement, the Ooni expressed his deep sorrow, saying, “We extend our heartfelt sympathy to the government of Oyo State, the organisers—Agidigbo Radio, owned by Oriyomi Hamzat, and former queen at the Ooni’s Palace, Ms Naomi Silekunola Ogunseyi, as well as the bereaved families of the young souls lost in the tragic incident in Ibadan yesterday.”
He also expressed solidarity with the Oyo State government and commended the governor for his swift response.
“This tragedy underscores the urgent need for collaborative efforts to ensure the safety and well-being of our children across Nigeria. The House of Oduduwa pledges to support all efforts aimed at bringing solace and healing to those affected by this devastating loss,” he added.
The Ooni called for immediate action to improve safety measures, stressing the importance of adherence to safety standards and child welfare policies in educational institutions. He advised Naomi Ogunseyi, Oriyomi Hamzat, and other co-organisers not to be discouraged by the unfortunate outcome of the event, which was originally intended to bring joy to children during the festive season.
He concluded, “Rather than being discouraged, they should remain committed to organising such laudable programmes for children, but with better planning and strategies in the future. The lesson must be learned.”
Ibadan stampede: Ooni reacts after arrest of ex-wife
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Farotimi: Advocacy group wants UK college to break ties with Afe Babalola
Farotimi: Advocacy group wants UK college to break ties with Afe Babalola
A growing wave of international pressure is urging King’s College London to sever its ties with prominent Nigerian lawyer and philanthropist Afe Babalola following the controversial arrest of rights lawyer Dele Farotimi.
Babalola, who is a major donor to the prestigious UK institution, has been accused of using his influence to have Farotimi arrested for alleged defamation.
In a petition dated December 17, 2024, the advocacy group Mothers United and Mobilised (MUM), representing a collective of Nigerian women and mothers, called on King’s College London to distance itself from Babalola and his actions.
The petition, signed by MUM convener Boluwaji Onabolu, urged the institution to release a statement condemning the alleged suppression of dissent and to return the €10 million donation made by Babalola in 2023.
Farotimi was detained by police officers from Ekiti State, Babalola’s home state, following critical remarks about the 95-year-old lawyer in his book.
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The book criticized Babalola for allegedly winning cases with financial leverage rather than legal skill, a claim that reportedly triggered the arrest.
Farotimi was detained for more than two weeks, despite being granted bail under stringent and punitive conditions.
The group contends that the situation in Ekiti, where Babalola holds considerable influence, presents little hope for a fair trial for Farotimi.
“The defamation charge, a civil matter, should have been addressed through legal proceedings in Lagos, but instead, it was escalated to an arrest orchestrated by Chief Babalola using his home state’s police,” the petition read.
The group stressed that King’s College London, a globally recognized institution, should not be associated with actions that undermine freedom of speech and legal fairness.
The group urged the UK institution to publicly support Farotimi’s right to a fair trial and demand his release from detention.
“King’s College London must stand on the right side of history. We urge the institution to break its silence and align itself with the fight for justice, human rights, and the protection of free expression, which are fundamental to the values it represents,” the group said.
Farotimi: Advocacy group wants UK college to break ties with Afe Babalola
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