How United Capital Sukuk Fund Could Benefit Nigerian Low-Income Earners


Friday, December  18, 2020 / 1:00PM / Bukola Akinyele- Yisau for WebTV / Header Image Credit: WebTV

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The United Capital Sukuk Fund has been described as a product that could help low-income earners mop up savings, and create buffers to navigate challenging periods and financial shocks.


Mr. Peter Ashade the Group Chief Executive Officer of United Capital disclosed this recently at the launch of the fund.


According to him, a Sukuk fund is a collective investment scheme that is targeted at low-income investors due to the mainstream investment that requires a light up at a minimum of a thousand.


He was of the view that the Sukuk fund was a good investment that everyone could participate in investing considering the peculiar state of the Nigerian economy.


Speaking on how the united Capital Sukuk Fund could contribute to the deepening of the capital market, he said the contribution would be to create other options for investors. "Looking at the company products, they are not structured on explicitly ethical parameters such that you can invest in any of them but the Sukuk fund is an ethical investment and would allow faith-based investors to participate in the instrument/s with the assurance that their faith-based approach to financial markets remains uncompromised and this is part of the process of deepening financial products in the capital market," he said.


Mrs. Odiri Ogini, Managing Director/CEO, United Capital Asset Management, on her part said that the Nigeria capital market was chokeful of conventional investment products. According to Ogini, the United Capital Sukuk Fund was an ethical investment product adding to an existing investment product, which shows United Capital as contributing to the deepening the capital market.


On the side of the digital revolution and how the United capital Sukuk fund Plan connects with Millennials and Gen Zs, Mr. Peter Ashade said one of the key attributes of the fund is operating highly in the digital space. He described it as an open-ended product and created on the investnow platform which can be done through the web or downloaded via the app.


"This is part of the opportunity the organization provides for millennials who want to invest and this shows that United Capital has built value touchpoints for every segment of the population," Mr. Ashade said.


Also, for the rural community, the CEO said the company operates from different geopolitical zones to enhance financial services and contribute its quota to the financial inclusion policy of the federal government and SEC and is looking forward to using unstructured supplementary service data (USSD) codes to open accounts.


On what United Capital can do differently in the Sukuk market apart from road infrastructure, Mrs. Odiri Ogini said there are opportunities in the area of housing projects for which there is a huge deficit in Nigeria. She noted that the Sukuk bond is an option that investors can take a look at to develop the housing sector.


Also speaking on opportunities in the Sukuk market, Mr. Mahmoud Shuaib the Director, Northern Region for United Capital stressed that the advantage of the ethical fund is the transparency, accountability, and the fact that it is asset-backed. He also advocated for part of the fund being used to support the needy or the less privileged in the North.


In respect of the North which is predominantly Muslim and accounts for the highest number of financially excluded people, he said sensitization and dissemination of information are vital to deepening financial inclusion in the region. He said that this calls for increased enlightenment programmes. Shuaib urged that for rural communities there should be increased awareness of the opportunities available by way of the "Sukuk Fund".

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