...Launches first SEC-approved N3bn Halal commodities fund
Competitive returns on investment awaits investors – Oyewale
Your funds won’t be used for haram causes, Sheikh Onike assures investors
The Chief Executive Officer of Marble Capital Limited, Mr. Akeem Oyewale said acceptance and demand of non-interest Islamic commodities and ethical transactions in Nigeria has been on the increase.
He said this at the launch of the ₦3 billion Marble Capital Halal Commodities Fund, the first Securities and Exchange Commission (SEC) approved commodities fund in Nigeria.
The unveiling, held at the Oriental Hotel, Lagos Nigeria was attended by investors and stakeholders in the industry, including top officials of the SEC led by the Commissioner for Operations, Mr. Temidayo Obisan; members of the company’s board, chaired by Mr. Ali Ango and notable Muslim scholars, including the Chief Missioner of NASFAT, Sheikh AbdulAzeez Onike and Chief Imam of Lekki Central Mosque, Sheikh Ridwan Jamiu.
Speaking on the growing demand for halal transactions, Oyewale said, “The SEC master plan is to see 25 percent of investments in capital market to be non-interest between 2015 and 2025. This is 2023, we are still less than 10 per cent. So, there is a huge room for acceptance. If you also look at the Sukuk issuance over the years, they’ve always been oversubscribed. It means there is a high demand for Islamic and ethical products.”
The CEO noted that non-interest commodities which are based on the principle of Shari’ah do not involve Muslim alone, saying there are quite a lot of non-Muslim businesses who have adopted the principle.
He said, “We have non-Muslim businesses that believe they are not out to make profits at all costs, but simply want to invest in instruments that will give them peace of mind. For instance, some non-Muslims are not okay with investing in the brewery sector because they know the impacts of people getting drunk. They are not okay with investing in the tobacco sector because they know the effects of tobacco on people, health-wise. So, they would rather invest in an instrument that is ethical and halal, though they are non-Muslims.
“They feel comfortable in their minds and can sleep well at night. We therefore have a universe of Muslim investors whom by their religion must invest in halal instruments. On the other hand, we also have a universe of non-Muslims that, by their own conviction just want to do what is right. For non-Muslims, it makes some of them happy that their funds are being used for something impactful.”
On N3 billion commodities offer
Speaking with Muslim News on the N3 billion Marble Halal Commodities Fund, Mr Oyewale said the company founded in 2020 is offering subscription of 30,000,000 units of N100 each at par payable in full on application.
He disclosed that the fund which primarily invests in commodities-linked instruments, operates based on the principles of Shari’ah and as such only invests in halal-certified investment instruments.
Mr. Oyewale said the Halal Commodities Funds, domiciled in the agro-economic and extractive sector, was launched to allow investors generate decent returns with moderate risks by investing in commoditised instruments.
“That gives them an opportunity to diversify their investments away from the usual equity, fixed income, treasury bills and so on. We are aware that a number of people do not have the skills and knowledge to invest commodities. So, we have put ourselves together as professional funds managers licensed by SEC to help them manage their investments in commodities through a mutual fund.
“A mutual fund puts everybody’s funds together and invests in specified instruments. In this case, we are going to be investing in commodities instruments either securitised commodities of maize, paddy rice and other agricultural products, or of metals like gold, silver, fixed income instruments or in equities of companies involved in commodities. That’s what the fund is all about,” he said.
Marble Capital will secure investors’ funds
The CEO emphasised that investors’ funds are secure with Marble Capital as their organisation is highly regulated with a standard governance structure in place.
He said: “Three things make our commodities funds very unique. The first thing is that you are investing in ethical and halal instruments. So you are not just after maximising your profit at all costs. It’s also about having very good ethical instruments.
“The second one is that you have access to professional fund management through our firm. The governance structure is there. The SEC is there. You have a custodian like FSDH Merchant Bank. You have Stanbic IBTC as the trustees. So, you are not putting your money with just one person. Your money is actually being overseen by reputable organisations.
“The third thing which I think is the most important is that it contributes to economic growth by supporting needed commodities sector, especially agric sector. By investing in commoditised instruments, we are literally indirectly assisting the growth of the economy of the agric sector in a structured manner in a way that limits your ability to lose money. So, if you don’t have any understanding of the market, you can invest through us.
“It is a mutual fund with a minimum size of N50,000, which means that even if all you have is N50,000 or you have N100 million, you can also invest in this instrument. Muslims and non-Muslims can invest with us, so long as you are interested in ethical investment.”
How to invest in commodities
The CEO of Mable Capital revealed that the Halal Commodities Funds is open-ended which invariably means that participation is on till perpetuity.
According to him, “We are doing the initial public offering for the next 90 days. It is going to end in July. Investors can participate by downloading their application forms from our website (www.marble.capital). Once they log on, they’ll see our form there and can participate. They should download the form, fill it online; send it directly to us by email and make payment. Our custodian is FSDH Merchant Bank.
“We do not need their cash, they should send it to the bank. Our custodian will let us know when they make the payment, and we issue their unit. So, they get evidence of investment within 24 hours by email. They hold on to their investment and they can be checking the value on a daily basis. It’s going to be published on our website and websites of other stock exchanges. After six, nine months or one year, if they think they’ve made enough profit, they can sell their investment. It is a perpetual investment.”
Obisan, Ango speak on the fund
Speaking earlier, Mr. Obisan, said that the launch of the fund would play a key role in the attainment of the 2015–2025 Nigerian Capital Market Master Plan of the Commission.
He stated that one of the cardinal points was for 25 percent of the market capitalization to come from non-interest areas such as Marble Halal Commodities Fund.
Also speaking, the Chairman, Marble Capital Limited, Alhaji Ali Ango said the fund would be invested in a series of commodities-linked instruments, including gold and precious metals among others.
According to him, “The Fund is forward-looking and will be able to adapt to these asset classes as they become available and are approved by the regulators.
The launch was timely, especially coming from the raging floods that ravaged Nigeria last year, prompting commodities exchanges not only to prioritize agriculture production but also processing and the act of off-taking which can add value.
“The Federal Government has agreed to support the farmers who lost a lot last year. This is why the launch is timely.”
Your funds won’t be used for haram causes, Sheikh Onike assures investors
Chief Missioner of Nasrullah-l-Fatih Society (NASFAT), Sheikh AbdulAzeez Onike, who is also a member of the Shari’ah Board of Marble Capital Limited, assured investors that their funds would not be used to invest in haram (unlawful) causes.
Onike who has been with the company from inception explained that the board signs off on any investment to be executed by the company, with strict examination of the Shari’ah compliance level.
“If it doesn’t comply with the Shari’ah, we yank it off. Of course, we are humans but we have been scrutinising each proposal we receive with eagle eyes. In that board, we have erudite scholars including Associate Professor Aliyu of Bayero of University Kano (BUK). I assure the investors that when they invest through Marble Capital, they are in safe hands. Their funding, investment will not be linked to any haram investment.
“For those of us in charge of the Shari’ah compliance, we look at anything brought to us critically before passing it off as a Shari’ah compliant instrument or a Shari’ah compliant product. That is what we have been doing religiously in the last three years I have been operating with them.
“Most of the times we go to SEC, we don’t spend much time before getting the necessary approvals. The basic things we look out for is whether it is riba (interest) based, whether it has gharar or gambling colouration.
“Nigerians make mistake when they call it non-interest banking. Interest is not the only reason why a transaction could be said to be non-Shari’ah compliant. There are so many other factors. Gharar for example, which is speculation. It is a situation where you are not sure of the returns on the investment and it involves gambling; you can lose or win. So, once we spot an element of all these in a product, we yank it off.
“There are Shari’ah standards. We look at the clauses one by one. The one that has to do with guarantee among others. Basically, we look at riba and trust. The position we hold is a trust. Once our names have been published as those who will look at those instruments and investments as Shari’ah compliant, people will be confident. If we now betray that trust, we’ll have to answer for it on the Day of Judgment. That’s the delicate nature of the role we play there.”
Marble Capital Limited was established and licensed in 2020, with the mission of assisting investors in line with their convictions and also making optimal returns. The organisation deals in ethical and Islamic products.
The company has played key roles in many landmark transactions. It was a party to the N250 billion sukuk by the Federal Government. It issued the first corporate Green Sukuk in Africa. It was also a party to the N25 billion asset-backed commercial paper for AFEX which was the first in the country, using Murabaha. Marble Capital was awarded as the best Islamic Asset Manager in 2022 by Business Day Award for Finance Industry.
