Digital investment platform, i-invest, has boosted offerings in the Islamic finance segment of the capital market with the launch of its Mudarabah Term Deposit.
In a statement, the firm revealed that the new product based on the Islamic financial concept of Mudarabah, which is a partnership between an investor who provides capital and an investment manager, would promote inclusion.
The Chief Operating Officer at i-invest, Tobi Olusoga, said, “At i-invest, we are committed to inclusivity and providing our customers with innovative investment opportunities that align with their values.
“The Mudarabah Term Deposit product is a testament to our dedication to ethical and compliant investing, ensuring that our customers’ investments resonate with their values and beliefs.”
The Director General of the Securities and Exchange Commission, Lamido Yuguda, has disclosed that Nigeria makes up only about 0.9 per cent of the global non-interest market.
Speaking at the first annual SEC Nigeria-IFSB International Forum on Non-Interest Capital Market in Abuja in December, Lamido said that the global Islamic finance market was estimated at $3.25tn and the market size in Nigeria was about $2.9bn, indicating the huge potential for Islamic financing in the country.
The Mudarabah principle involves the capital provider entrusting funds for investment to an investment manager.
The resulting profits are then shared based on a pre-agreed Profit-Sharing Ratio.
i-invest said that in the banking sector, Mudarabah, has “evolved into an investment product, offering a Shariah-compliant alternative to conventional fixed deposit products, aptly named Mudarabah Term Deposit”.
It noted, “In this arrangement, customers act as investors, depositing funds into their accounts. The profit-sharing ratio is collaboratively determined by the parties, ensuring a transparent and mutually agreed-upon structure.
“The deposited funds are then strategically deployed to permitted investment sectors by the partner bank. At the end of the period, the gross profit is shared between the customer and the bank based on the pre-determined sharing ratio.”
