CFG Africa is pushing for a broader function for non-interest banking in Nigeria’s monetary system, arguing that bigger and extra frequent Sukuk issuances might assist unlock long-term capital for infrastructure, deepen home capital markets and attract traders searching for asset-backed and moral devices amid world volatility.
The decision was a central theme on the CFG Africa non-interest funding discussion board held in Abuja on Thursday, as policymakers, bankers and fund managers debated how Nigeria can mobilise new swimming pools of capital at a time when typical funding sources are below pressure.
CFG Africa was fashioned from the merger of Maynard Companions and Concreed Capital and operates throughout asset administration, funding banking, advisory and trusteeship.
Talking on the sidelines of the discussion board, Babajide Lawani, Managing Director and Chief Government Officer of CFG Africa, stated the group had intentionally positioned itself within the non-interest finance area to develop merchandise that align with moral and faith-based funding preferences whereas delivering aggressive returns.
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“Past the providers we provide, we’re fairly open-minded and intellectually curious,” Lawani stated. “We don’t prefer to chase the standard issues different markets will do, and it is among the the reason why we’ve got deliberately entered the non-interest area. We predict we will convey new issues to that market and new merchandise that may help traders with that orientation.”
Lawani stated CFG Africa had recorded sturdy progress over the previous 5 to 6 years, increasing “in multiples on an annual foundation” because it constructed shopper confidence and deepened market participation. He described non-interest finance as a strategy to broaden Nigeria’s investable capital base by accommodating traders who, for faith-based causes, keep away from typical interest-bearing devices.
“The non-interest area can drive inclusion,” he stated. “There are individuals who consider, due to their religion, they need to not put money into sure conventional investments. By carving out this area, you broaden investable funds round Nigeria and permit individuals to stay a healthful life, investing based on their orientation with out feeling they’re shedding out.”
The discussion board comes as Nigeria grapples with infrastructure deficits, tight public funds and risky world markets which have pushed traders towards property perceived as safer and extra clear.
In his keynote handle, Basheer Oshodi, Chief Government of TrustArthur and President of the non-interest monetary establishments affiliation of Nigeria, stated rising geopolitical dangers and financial uncertainty had strengthened the case for asset-backed devices equivalent to sukuk.
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“Gold has appreciated by between 60 and 80% in recent times, and virtually 20% this yr alone,” Oshodi stated. “You may not predict world economics and world politics, so there’s a shift into different asset courses.”
Oshodi pointed to Nigeria’s personal expertise as proof of sturdy urge for food for well-structured devices. The nation’s most up-to-date 10-year Ijarah Sukuk was oversubscribed by about 735%, mirroring demand seen in Eurobond choices.
Sovereign Sukuk issuances by the Federal Authorities have attracted subscriptions of greater than 2.21 trillion naira towards affords of 300 billion naira, based on the Debt Administration Workplace (DMO).
“The Sukuk market is just not doing badly in any respect,” Oshodi stated. “However once-a-year issuance is just not sufficient. We ought to be issuing no less than quarterly, and the dimensions ought to be a lot greater. Folks will nonetheless oversubscribe.”
He argued that deeper and extra frequent issuance would permit fund managers to develop secondary devices, enhance liquidity and channel funding towards infrastructure at scale. Oshodi additionally highlighted structural gaps in Nigeria’s non-interest ecosystem, noting that the mixed property of the sector stay smaller than these of a handful of digitally enabled microfinance banks.
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“Three digital microfinance banks have property greater than the complete non-interest banking market put collectively,” he stated. “These gaps are alternatives. Know-how is the expansion driver, and it needs to be now.”
Different audio system on the occasion underscored the function of non-interest finance in implementing self-discipline by asset-backed buildings. Ameenah Adebayo-Shittu, group head of compliance at Lotus Financial institution, stated misconceptions that Shariah-compliant merchandise ship decrease returns are usually not supported by knowledge.
“In 2025, Shariah-compliant US fairness funds delivered between 14 and 16% returns, and in Nigeria, Sukuk has been oversubscribed many occasions,” she stated.
CFG Africa executives stated the group’s moral fund was designed to deal with a scarcity of funding choices within the non-interest area and to advertise inclusion by pooling publicity to authorities sukuk, Islamic investments and moral equities. Extra merchandise are deliberate as collaboration throughout the ecosystem deepens.
