‘Nigeria’s Islamic finance outlook enormous’

Shariah Adviser, United Capital Sukuk Fund, Attahiru Maccido, has said the outlook for Islamic finance in Nigeria is enormous with Nigeria growing faster than other jurisdictions. He made the assertion at the launch of the first designated mutual fund for Sukuk by United Capital Asset Management Limited, a member of United Capital Plc. The company […]

Shariah Adviser, United Capital Sukuk Fund, Attahiru Maccido, has said the outlook for Islamic finance in Nigeria is enormous with Nigeria growing faster than other jurisdictions.

He made the assertion at the launch of the first designated mutual fund for Sukuk by United Capital Asset Management Limited, a member of United Capital Plc.

The company is raising N1 billion as the initial target size of the open-ended mutual fund.

Sukuks are non-interest, alternative finance bonds, mainly based on the concept of Islamic finance that is invested in assets or projects.

Maccido said with the recent review of the pension investment guidelines by the National Pension Commission (Pencom), non-interest instruments are now part of the multi-structured and diversified assets management provided for the investment guidelines.

Minimum subscription to the United Capital Sukuk Fund is 10,000 units at N1 per unit with subsequent subscriptions in multiples of 5,000 units at N1 per unit.

This implies minimum initial investment of N10,000 and subsequently in additions of N5,000.

Minimum holding period for the fund is 180 days while purchases made after the initial public offering (IPO) will be subject to a lock-in period of 30 days.

Group Chief Executive Officer, United Capital Plc, Mr. Peter Ashade, said: “It is a step in the right direction. We will continue to develop products that will meet the diverse flavours of our clients.”

Group Executive Director, United Capital Plc, Mr Sunny Anene, said the group will bring to bear on the fund its wealth of experience as the leading fund manager in Nigeria with assets under management of $400 million.

Managing Director, United Capital Asset Management Limited, Mrs Odiri Oginni, said the open-ended nature of the fund provides a seamless opportunity for investors with easy entry and exit.