FG advocates non-interest financing, equity as solutions to global debt crisis

Mr Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has highlighted non-interest and equity financing as viable solutions to the prevailing global debt crisis.

Edun said this at the maiden Securities and Exchange Commission (SEC) and the Islamic Financial Service Board (IFSB) international forum on non-interest capital markets in Abuja on Wednesday.

He emphasised the need for Nigeria to harness the substantial funds and opportunities present in equities and non-interest markets.

Addressing the forum, Edun stressed the importance of embracing green projects funded by equity to sustain the inclusive growth agenda set forth by President Bola Tinubu.

He underlined the urgency of financing green projects to alleviate the burden of the nation’s debt service ratio, which currently surpasses its revenue ratio.

Mr Lamido Yuguda, the Director-General of SEC, reiterated the forum’s focus on bolstering the development of the non-interest finance segment in Nigeria.

With Islamic finance accounting for an estimated $2.9 billion at the end of 2022, Yuguda emphasised the need for growth, stating that Nigeria constitutes just 0.9 per cent of the global non-interest market.

Dr Bello Danbatta, the Secretary-General of IFSB, expressed optimism about Nigeria’s potential to lead the continent in non-interest capital market development.

He identified opportunities to revive industries such as textiles and education through non-interest capital markets.

Dr Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), represented by Mr Haruna Mustafa, Director, Financial Policy and Regulation of the Bank, said they would work with other stakeholders to evolve and foster development in the sector.

Other key figures, including Mr Sunday Thomas of the National Insurance Commission and Mr Bello Hassan of the Nigeria Deposit Insurance Corporation, echoed the call for policy actions to deepen the non-interest capital market.

The forum concluded with the signing of a Memorandum of Understanding (MoU) between SEC and IFSB, signaling a commitment to enhance the market’s growth through capacity building.

Source: News Agency of Nigeria