Nigeria’s non-interest capital market has achieved a significant milestone, expanding to a valuation exceeding N1.6 trillion, according to the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama.
Speaking at the 7th African International Conference on Islamic Finance (AICIF 2025) held in Lagos, Dr. Agama described the surge as a “remarkable validation of investor confidence, regulatory innovation, and the growing appetite for ethical finance in Africa’s largest economy.”
He emphasized that the non-interest segment — anchored on Islamic finance principles — has become a vital pillar of Nigeria’s broader financial inclusion strategy and a key vehicle for mobilizing long-term funds for critical infrastructure projects.
Ethical Finance Driving Infrastructure Development
Dr. Agama credited the rapid growth of the non-interest market to deliberate policy actions and reforms under the Investments and Securities Act (ISA) 2025, which provides a robust framework for ethical and Shariah-compliant investments.
“The remarkable growth of this segment, now valued at over N1.6 trillion, shows that when the regulatory environment is right, markets respond with innovation and resilience,” Agama stated.
A cornerstone of this expansion, he noted, is Nigeria’s sovereign Sukuk programme, which has raised more than N1.4 trillion across seven issuances since 2017. Proceeds from these Sukuk have funded 124 key road projects spanning approximately 5,820 kilometres across the country.
In a major development, the SEC boss disclosed that the federal government has approved plans for a $500 million international Sukuk issuance, marking Nigeria’s next phase of engagement with the global Islamic finance community. The offering is expected to attract foreign ethical investors and deepen Nigeria’s participation in the rapidly expanding international Sukuk market.
Africa’s Rising Embrace of Non-Interest Finance
Dr. Agama also highlighted the growing momentum of Islamic finance across Africa, citing examples from Egypt, Kenya, Tanzania, Senegal, and Ghana, where regulators are strengthening frameworks to attract Shariah-compliant investments.
He said the expansion reflects Africa’s readiness to integrate non-interest financial instruments into mainstream financial systems and use them as catalysts for sustainable development.
Agama commended the organizers of AICIF, Metropolitan Skills, for sustaining an influential platform that shapes the discourse around ethical finance and financial inclusion. He added that insights from the 2025 conference would feed into the Second Nigerian Capital Market Masterplan (2026–2035), which is set to guide the next decade of market reforms following the conclusion of the first plan this year.
“Our vision is clear,” Agama declared. “Ethical finance is not just about compliance with Shariah principles — it is about fairness, transparency, and shared prosperity. Prosperity without inclusion is not sustainable.”
Bridging Africa’s Infrastructure Gap
In her keynote remarks, Ms. Ummahani Ahmad Amin, Chair of the AICIF, commended Nigeria’s progress but cautioned that Africa still lags in leveraging Islamic finance as a sustainable source of capital.
She noted that while global Islamic financial assets expanded by 14.9% to reach $3.88 trillion in 2024, the continent’s contribution remains modest due to structural barriers such as low market depth, weak liquidity, and limited investor education.
“Islamic finance has proven its resilience globally, but Africa must now convert potential into performance,” Amin said. “To make Sukuk and other non-interest instruments effective in bridging our infrastructure deficit — estimated between $130 billion and $170 billion annually — we must strengthen local ecosystems and awareness.”
She also stressed the importance of technology and innovation, noting that Artificial Intelligence (AI) is reshaping the ethical finance landscape through automated compliance, data-driven transparency, and enhanced market accessibility. However, she warned that without strong ethical safeguards, technology could undermine the very trust that underpins Islamic finance.
Innovation, Inclusion, and the Next Generation
A notable feature of this year’s conference was a startup pitch competition co-hosted by the SEC, designed to encourage youth-driven innovation in ethical finance. ZannyTecture Recycling Company Limited won the Social Impact category for its sustainable recycling solutions, while BetaLife Health clinched the Technology Innovation award for its AI-powered platform that optimizes blood supply chains in healthcare.
In closing, Amin announced the launch of The Metropolitan Waqf, a charitable endowment aimed at expanding access to education for underserved communities, especially in Nigeria’s conflict-affected regions.
The event’s overarching message was clear: Nigeria’s non-interest capital market is not just growing — it is transforming into a vehicle for inclusive, transparent, and sustainable economic development, positioning the country as a regional leader in ethical finance.
