Get Guardian on GooglePresident and Chief Executive of Dangote Industries Limited, Aliko Dangote, has challenged Lotus Capital Limited to support efforts to enhance the performance of the real sector of the economy by financing critical areas.
This comes as the firm seeks to expand its financing activities across agriculture, real estate, renewable energy and industry.
The Managing Director/Chief Executive Officer of Lotus Capital, Hajara Adeola, said the company’s next phase of growth would focus on building stronger partnerships with businesses across the economy, ranging from small and medium-sized enterprises (SMEs) to large industrial conglomerates such as the Dangote Group.
She said the objective was to develop financing solutions capable of addressing the long-term capital requirements of businesses and strengthening the contribution of non-interest finance to economic development.
Adeola spoke at the 20th anniversary celebration of Lotus Capital Halal Investments in Lagos over the weekend.
She highlighted the company’s contributions to the development of Nigeria’s non-interest financial services industry over the past two decades, particularly its efforts to promote investment alternatives that comply with Islamic principles.
According to her, the company is seeking to move closer to the real economy by developing innovative financing products, including technology-driven solutions, to support businesses, expand production and create employment.
She also highlighted its advisory role to the Federal Government and contributions to developing the regulatory and institutional framework for non-interest finance in Nigeria.
In a goodwill message, Dangote urged Lotus Capital to expand its participation in financing manufacturing plants, agricultural processing facilities, infrastructure, industrial parks, ports, renewable energy projects and transportation networks.
He also called on the company to deepen the development of Nigeria’s corporate market as a viable source of long-term industrial financing.
Dangote commended the institution for pioneering and sustaining a non-interest finance ecosystem in Nigeria for two decades, despite the challenges associated with introducing a relatively new financial concept into the country’s formal financial system.
He recalled that when Lotus Capital commenced operations, non-interest finance was still an emerging concept in Nigeria, with conventional banking and capital market instruments dominating the financial system and limited investment options available to investors seeking Sharia-compliant alternatives.
Also, Lagos State Governor, Babajide Sanwo-Olu, represented by the Permanent Secretary, Ministry of Finance, Mahmud Tajudeen Alao, said the growth of non-interest finance was increasingly important to the country’s financial system.
He noted that Lagos, as Nigeria’s leading commercial and financial centre, required diverse sources of capital to sustain its development ambitions.
According to him, opportunities abound for financial institutions to mobilise long-term investments across infrastructure, housing, manufacturing, technology, renewable energy, agriculture and small businesses.
The Director of the Securities and Exchange Commission’s Department of Securities and Investment Services, Abdulkadir Abbas, said the commission had established a regulatory foundation for the development of Nigeria’s non-interest capital market.
He recalled that the SEC developed regulations covering Islamic mutual funds and Sukuk between 2008 and 2015, paving the way for the introduction of more Sharia-compliant investment products.
