Nigeria’s non-interest capital market has expanded to a valuation exceeding N1.6 trillion, a milestone the Securities and Exchange Commission (SEC) says underscores the nation’s growing capacity to harness ethical finance for infrastructure renewal and inclusive growth.
The SEC’s Director-General, Dr. Emomotimi Agama, disclosed the figure at the 7th African International Conference on Islamic Finance (AICIF) 2025 in Lagos. He described the expansion as “a testament to investor confidence and sound regulatory reforms,” adding that the growth trajectory signals Nigeria’s emergence as a key hub for Shariah-compliant and non-interest financial products in Africa.
Agama said the performance of the non-interest segment reflects the success of initiatives embedded in the new Investments and Securities Act (ISA) 2025, which introduced stronger governance structures and compliance mechanisms for Islamic finance products.
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“The remarkable growth of the non-interest segment in Nigeria, a market now valued at over N1.6 trillion, is clear evidence that when there is an enabling regulatory environment, the market responds with vigor,” he said.
He noted that Nigeria’s sovereign Sukuk programme, a cornerstone of its ethical financing drive, has raised over N1.4 trillion through seven issuances since 2017, funding 124 key road projects covering about 5,820 kilometers nationwide. These projects, spread across all six geopolitical zones, have contributed significantly to the rehabilitation of major transport corridors and boosted regional trade integration.
Agama added that the federal government’s recent approval of a $500 million international Sukuk issuance would mark a new phase in Nigeria’s push to attract global ethical investors to fund large-scale infrastructure and diversify financing sources away from conventional debt markets.
Africa’s growing embrace of non-interest instruments
The SEC chief pointed to similar policy momentum across Africa, with countries such as Egypt, Kenya, Tanzania, Senegal, and Ghana now updating legal frameworks to accommodate Shariah-compliant products. He said the rising demand for non-interest instruments was “a clear indication that the continent is ready to integrate ethical finance into the mainstream of development funding.”
Agama also commended Metropolitan Skills, the conference organizer, for sustaining discourse around sustainable capital formation. He revealed that outcomes from the AICIF would be integrated into the Second Nigerian Capital Market Masterplan (2026–2035), which will succeed the first 10-year strategy concluding in 2025.
He urged policymakers and investors to view Islamic finance as a tool for equitable prosperity, stressing that “prosperity without inclusion is not sustainable.”
Bridging Africa’s infrastructure gap
Conference Chair Ms. Ummahani Ahmad Amin said while Islamic finance had gained traction across the continent, Africa was yet to fully tap its potential as a source of catalytic capital to bridge the continent’s $130 billion–$170 billion annual infrastructure gap.
She observed that although global Islamic financial assets grew by 14.9% year-on-year to $3.88 trillion in 2024, Africa’s share remains negligible due to low market depth, weak liquidity, and limited investor awareness.
“To enable Sukuk and other Islamic instruments serve as effective drivers of financial intermediation and macro-financial stability, we must first address the barriers that continue to constrain their growth,” Amin said.
She further highlighted the emerging role of Artificial Intelligence (AI) in automating compliance, expanding access, and building transparency within the ethical finance ecosystem.
Youth empowerment and social impact
As part of efforts to encourage youth participation in ethical innovation, the AICIF hosted a startup pitch competition in partnership with the SEC. ZannyTecture Recycling Company Limited won the Social Impact category for its waste-to-wealth initiative, while BetaLife Health clinched the Technology prize for its AI-driven blood supply optimization platform.
In closing, Amin unveiled The Metropolitan Waqf, a new endowment initiative designed to expand access to education for marginalized communities in Nigeria, particularly in conflict-affected regions.
Analysts say the rapid expansion of Nigeria’s non-interest capital market, alongside rising international recognition of Sukuk as a reliable funding mechanism, positions the country to become a continental leader in ethical infrastructure finance—and a model for sustainable economic inclusion in Africa.