Sukuk: Stockbrokers Urge Nigerians to Support FG growth Plan
To support the government growth plan, the Chartered Institute of Stockbrokers (CIS) has urged Nigerians to subscribe to N150 billion Sukuk issued by the Debt Management Office.
The CIS made the plea in a statement jointly signed by the Institute’s President and Chairman of Governing Council, Mr Olatunde Amolegbe and the Registrar and Chief Executive, Mr Adedeji Ajadi on Saturday.
The N150 billion Sukuk, which the institute tagged as a profitable financial instrument, is presently on sale to the investing public.
According to DMO, the subscription will expire on June 2.
The statement urged the investing public to partner with stockbrokers to take advantage of investment in Sukuk to boost their cash flow and assist the government in its efforts to invest in road infrastructure.
“The Institute, hereby, encourages investors to approach their stockbrokers to learn more about this instrument prior to making their investment decision.
Stockbrokers are very accessible and they are professionals, equipped with skills and competencies in evaluating the risk and returns associated with such an instrument and will be able to guide investors accordingly.
“Sukuk Ijarah is fixed income security backed by the Federal Government.
This makes it an investment without risk as repayment of investors is guaranteed by the full faith and credit of the Federal Government of Nigeria, hence, the instrument as a gilt hedge.”
Sukuk is highly sought after by ethical investors. it provides a regular bi-annual tax-free payment for the period of the instrument while the principal will be paid at the end of the maturity period which is seven years.
”The profit to investors is pre-determined at regular intervals to enable them to enjoy a steady cash flow. Sukuk helps in the redistribution of wealth.
“It is a risk management instrument which is ideal for both speculators and investors. Speculators can sell before maturity. The instrument will help the government to finance large projects.
“Stockbrokers will assist investors to open accounts at the Nigerian Stock Exchange’s Clearing House, Central Securities Clearing System (CSCS) to keep (warehouse) their investments with opportunities to track it on The Exchange and FMDQ in case they decide to sell before maturity.
“The Institute encourages the public to visit the website www.cisinigeria.com or that of the Exchange and FMDQ to learn more about the authorised stockbrokers to approach,” the statement said.
The Federal Government has announced that proceeds of Sukuk shall be utilised for the execution of road projects in the six geopolitical zones in Nigeria.
The financial instrument attracts 11 per cent interest and a minimum subscription of N10,000 in order to encourage retail investors.
Read Also: DMO Plans to Issue Sukuk Bond in Third Quarter of 2021
Sukuk: Stockbrokers Urge Nigerians to Support FG growth Plan
