Growth of Nigeria’s Non-Interest Capital Market
Nigeria’s non-interest capital market has experienced significant growth, reaching a valuation of over N1.6 trillion. This development highlights its increasing role in enhancing financial inclusion and supporting infrastructure development, according to the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama.
Agama shared this information during his speech at the 7th African International Conference on Islamic Finance (AICIF) 2025, which took place in Lagos. He emphasized that the growth of the non-interest segment is a reflection of investor confidence and the success of the SEC’s regulatory reforms under the Investments and Securities Act (ISA) 2025.
The director-general pointed out that the remarkable expansion of the non-interest market in Nigeria demonstrates how a supportive regulatory environment can stimulate market activity. He also highlighted the success of Nigeria’s sovereign Sukuk program, which has raised over N1.4 trillion through seven issuances since 2017. These funds have been used to finance the construction and rehabilitation of 124 critical roads spanning more than 5,820 kilometers across the country.
Additionally, Agama mentioned the recent approval of a $500 million international Sukuk, which marks a new phase in Nigeria’s efforts to attract ethical financing for infrastructure and economic growth. He stressed that the rapid growth of Islamic finance across Africa indicates the continent’s readiness to embrace non-interest instruments as a mainstream funding source.
He cited examples from countries such as Egypt, Kenya, Tanzania, Senegal, and Ghana, which are strengthening their legal and policy frameworks to attract Shariah-compliant investments. Agama commended Metropolitan Skills for its contributions to advancing Islamic finance and noted that resolutions from the conference will feed into the Second Nigerian Capital Market Masterplan (2026-2035), as the first plan concludes this year.
Key Themes and Challenges
In her address, the Conference Chair, Ms. Ummahani Ahmad Amin, acknowledged the progress made in Islamic finance in Nigeria and across Africa. However, she pointed out that the continent has yet to fully harness the potential of Islamic finance as a reliable source of catalytic capital to bridge its annual infrastructure financing gap, estimated at $130 billion to $170 billion.
She noted that while global Islamic financial assets grew by 14.9% year-on-year to $3.88 trillion in 2024, Africa’s share remains marginal due to barriers such as underdeveloped market infrastructure, limited liquidity, and low investor education.
“To enable Sukuk and other Islamic financial instruments to 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.
Role of Technology and Collaboration
Amin also discussed the role of Artificial Intelligence (AI) in reshaping ethical finance, automating compliance, and expanding financial access. However, she warned that the technology must be guided by ethical guardrails to sustain trust.
She emphasized that collaboration and knowledge-sharing are key to unlocking Africa’s inclusive prosperity. The theme of this year’s AICIF, “Africa Emerging: A Prosperous and Inclusive Outlook,” reflects optimism about the continent’s ability to drive sustainable and inclusive development.
As part of its commitment to youth empowerment, the conference, in partnership with the SEC, hosted a pitch competition to support promising startups. ZannyTecture Recycling Company Limited won in the Social Impact category for turning discarded tyres and PET bottles into eco-friendly products, while BetaLife Health clinched first place in the Technology category with its AI-driven blood supply optimization platform.
New Initiatives and Future Prospects
Amin also unveiled The Metropolitan Waqf, an initiative aimed at providing access to education for marginalized communities in Nigeria, particularly in areas affected by conflict. This initiative underscores the importance of education in fostering long-term economic growth and social stability.
With continued efforts to enhance regulatory frameworks, promote ethical finance, and leverage technological advancements, Nigeria and other African nations are well-positioned to capitalize on the growing potential of Islamic finance. As the continent moves forward, the focus on inclusivity, sustainability, and innovation will remain central to achieving broader economic and social development goals.