SEC Champions Islamic Finance to Drive Investments in Nigeria!

Reported by Marian Opeyemi Fasesan | Sele Media Africa

The Securities and Exchange Commission (SEC) Nigeria is throwing its weight behind Islamic finance, describing it as a potent engine for attracting investments, deepening financial inclusion, and expanding Nigeria’s ethical finance ecosystem.

What’s Going On

• At a recent press briefing, SEC disclosed that Nigeria’s non‑interest (Islamic) capital market has now reached a valuation of ₦1.6 trillion, signaling rising investor confidence in Shariah‑compliant financial instruments. [1]
• The SEC has partnered with organizations like Metropolitan Law Firm and Metropolitan Skills Ltd to promote ethical finance through the upcoming African International Conference on Islamic Finance (AICIF 2025), themed “Africa Emerging: A Prosperous and Inclusive Outlook.” [2]
• In support of growth, SEC is empowered under the new Investments and Securities Act (ISA) 2025 to register non‑interest collective investment schemes and broaden the spectrum of Shariah-compliant instruments in the country. [3]
• Nigeria’s federal government has also demonstrated concrete use of Islamic finance: since 2017, the government has issued six sovereign Sukuk bonds totaling ₦1.1 trillion, funding 124 federal road projects across Nigeria’s geopolitical zones. [4]

Why It Matters

• Mobilizing capital ethically: Islamic finance offers alternative, interest‑free structures that may appeal to a larger portion of Nigeria’s population, especially those previously excluded from conventional banking services for religious reasons.
• Infrastructure funding: Sukuk issuance has already been leveraged for major infrastructure projects, helping reduce reliance on traditional debt instruments and potentially lowering risks associated with interest rate volatility.
• Investor confidence & growth: Strong subscription rates in Nigeria’s Sukuk offerings suggest growing appetite for ethical instruments. SEC sees this as a pathway to deepen capital markets and broaden investor participation. [1]
• Regulatory backing: With the ISA 2025 enhancing the legal foundation for non‑interest finance, the regulatory environment is becoming more supportive, which could attract both domestic and foreign investment.

Citations:

1. Vanguard News: www.vanguardngr.com/2025/10/nigerias-non-interest-capital-market-hits-n1-6trn-sec?utm_source=chatgpt.com
2. Vanguard News: www.vanguardngr.com/2025/09/aicif-2025-sec-metropolitan-champion-ethical-finance-in-nigeria/?utm_source=chatgpt.com
3. Businessday NG: businessday.ng/news/article/nigerias-non-interest-capital-market-valuation-reaches-n1-6trn-sec/?utm_source=chatgpt.com
4. Punch News: punchng.com/fg-spent-n1-1tn-sukuk-funds-on-124-road-projects-sec/?utm_source=chatgpt.com

About The Author

Marian Opeyemi Fasesan

Marian Opeyemi Fasesan is a dynamic journalist and editorial leader committed to excellence in news reporting and storytelling. As the Managing Editor of Sele Media Africa, she ensures daily operations run smoothly while upholding the highest editorial standards. With a strong eye for detail and deep understanding of audience engagement, Marian coordinates content across platforms, guiding teams to produce compelling, timely, and credible news. Her leadership reflects the heart of Sele Media Africa’s mission—to inform, inspire, and elevate voices across the continent.

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