NSE DG, Oscar Onyema
The Nigerian Stock Exchange will today launch the Shari’ah-compliant index known as the NSE Lotus Islamic Index (NSE LII). The index will consist of companies in conformity with the principles of Shari’ah.
It is the first index created to track the performance of Shari’ah compliant equities on the floor of the Nigerian bourse and it is expected to increase the breadth of the market and create an important benchmark for investments as the alternative non-interest investment space widens.
Speaking on the development, the exchange’s Project Manager for the NSE LII launch, Mr. Osahon Aire, explained that investment instruments like Exchange Traded Funds (ETFs) could be built on the Index, which investors with a preference for ethical/Shari'ah compliant investments can invest in.
He added that the launching would tactically aid the development of the market.
“The NSE Lotus Islamic Index would further illuminate the massive investment opportunities available to ethically minded investors, both in Nigeria and overseas. All the companies that would appear on the Index have been thoroughly screened by Lotus Capital Halal Investment, in accordance with a methodology approved by an internationally recognised Shari’ah Advisory Board comprising renowned Islamic scholars,” Aire noted.
He explained that the launching of the index was an exciting development, in line with the exchange’s mandate of broadening and deepening the Nigerian capital market.
The index came on board following a memorandum of understanding signed by the management of exchange and Lotus Capital in June.
Speaking on the product then, the Chef Executive Officer of the NSE, Mr. Oscar Onyema, had explained that investment instruments like ETFs could be built on the index, where investors with a preference for ethical/Shari'ah compliant investments could invest in.