Financial experts in Nigeria’s non-interest and ethical investment space have identified vast untapped opportunities in the country’s non-interest financial market, calling for broader product offerings and deeper engagement at the grassroots.

According to the Securities and Exchange Commission (SEC), Nigeria’s non-interest (Islamic) capital market is valued at over ₦1.6 trillion, with sovereign Sukuk issuances accounting for a significant share.

The experts spoke at the 2026 Non-Interest Investment Forum, themed “Shaping the Future of Ethical Investments: Opportunities for Non-Interest Investors in Nigeria,” held in Abuja on Thursday.

The event was organised by CFG Africa, a multi-asset investment and capital management firm.

Participants noted that while attention has largely focused on high-profile, large-scale investments, the real growth opportunities lie at the lower end of the economic pyramid, particularly among micro, small and medium enterprises (MSMEs).

They also agreed that Nigeria could leverage the non-interest investment market to boost economic growth and expand financial inclusion.

Delivering the keynote address, the Chief Executive Officer of TrustArthur, Dr. Basheer Oshodi, observed that the non-interest market currently offers limited investment products because of an overconcentration on large portfolios.

“Creating assets does not have to involve large portfolios all the time. We have at least 120 million Nigerians at the bottom of the pyramid. Most of them need very little capital to run their businesses and are very prudent in spending and repayment,” Oshodi said.

“We need to start developing MSME-focused funds that specifically target this segment.”

He added that operators in the non-interest space should also design products targeted at women, describing them as a demographic that is highly active and financially disciplined.

Oshodi further stressed the need for greater adoption of technology to enable operators reach underserved and remote communities, thereby unlocking grassroots opportunities.

He also urged the Federal Government to increase the frequency of Sukuk issuances, describing the current pace as inadequate.

“One Sukuk a year is not enough. We should have Sukuk issuances every quarter. That would significantly expand the market size,” he said.

“With more Sukuk in circulation, it becomes easier to create smaller instruments and develop a more active risk-asset market.”

Also speaking, the Managing Director of CFG Africa, Babajide Lawani, said Nigeria stands to gain significantly from promoting non-interest investments, as they attract individuals who may otherwise avoid conventional financial instruments due to faith-based considerations.

“The non-interest segment creates opportunities for people who ordinarily would not invest in traditional instruments to participate in the investment ecosystem. This ultimately expands the pool of investable funds in Nigeria,” he said.

Lawani explained that the forum was organised to reaffirm CFG Africa’s commitment to the non-interest ecosystem and to formally launch its first product.

“We are not here because others are doing it; for us, it is intentional. We have launched our first product and will be introducing more, because there is a clear need for investment destinations in the non-interest space,” he said.

“It was important to bring stakeholders together to discuss the future of the market as we position ourselves for growth.”

On her part, Dr. Ameenah Adebayo Shittu of Lotus Bank addressed misconceptions surrounding the profitability of non-interest investments.

“It is a wrong notion to believe that Sharia-compliant investments are not profitable,” she said.

“In 2025, Sharia-compliant equity funds delivered 14 to 16 per cent annual returns to investors in Nigeria, while Sukuk—one of the primary Islamic financial instruments—was oversubscribed by over 700 per cent.

These figures clearly demonstrate the profitability of Islamic-based instruments.”

She explained that while all Sharia-compliant investments are ethical, not all ethical investments are Sharia-compliant, noting that the key distinction lies in the prohibition of interest under Sharia principles.