CIS Urges Nigerians to Support FG’s Growth Plan Through Sukuk
The Chartered Institute of Stockbrokers (CIS) has urged Nigerians to support the Federal Government’s growth initiatives by subscribing to its N150 billion Sukuk.
The N150 billion Sukuk, a profitable financial instrument presently on sale to the investing public will expire on June 2.
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 statement urged the investing public to partner with stockbrokers to take advantage of investment in Sukuk to boost their cash flow and assist the Federal 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 a 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 maturity period which is seven years.
”The profit to investors is pre-determined at regular interval to enable them enjoy steady cash flow. Sukuk helps in 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 News Agency of Nigeria (NAN) reports that the Federal Government has announced that proceeds of Sukuk shall be utilised for execution of road projects in the six geopolitical zones in Nigeria.
The financial instrument attracts 11 per cent interest and minimum subscription of N10,000 in order to encourage retail investors.