Nigeria’s non-interest capital market hits N1.6trn — SEC DG

Barbara Bako, Abuja.

The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, says Nigeria’s non-interest capital market has expanded to a valuation of over N1.6 trillion, reflecting growing investor confidence and stronger regulatory reforms in the sector.

Speaking at the 7th African International Conference on Islamic Finance (AICIF) 2025 held in Lagos, Dr. Agama said the development highlights the increasing role of the non-interest segment in deepening financial inclusion and financing infrastructure across the country.

“The remarkable growth of the non-interest segment in Nigeria a market now valued at over ₦1.6 trillion is clear evidence that when there is an enabling regulatory environment, the market responds with vigour,” he stated.

The SEC DG noted that Nigeria’s sovereign Sukuk programme has raised more than ₦1.4 trillion through seven issuances since 2017, supporting the construction and rehabilitation of 124 critical roads covering over 5,800 kilometres nationwide.

Agama added that the recent approval of a $500 million international Sukuk would mark another milestone in Nigeria’s efforts to attract ethical financing for infrastructure and economic growth.

He observed that the rapid growth of Islamic finance across Africa signals the continent’s readiness to embrace non-interest instruments as a mainstream funding source, citing initiatives from Egypt, Kenya, Tanzania, Senegal, and Ghana, which are strengthening their frameworks to attract Shariah compliant investments.

Dr. Agama also commended Metropolitan Skills for its contributions to the growth of Islamic finance and noted that resolutions from the conference would be incorporated into the Second Nigerian Capital Market Masterplan (2026–2035) as the first plan concludes this year.

He urged stakeholders to continue leveraging Islamic finance for ethical investment, financial inclusion, and infrastructure renewal, stressing that “prosperity without inclusion is not sustainable.”

In her remarks, the Conference Chair, Ms. Ummahani Ahmad Amin, said Islamic finance had recorded significant progress in Nigeria and across Africa but noted that the continent was yet to fully harness its potential as a reliable source of catalytic capital to bridge its annual infrastructure financing gap, estimated between $130 billion and $170 billion.

She explained that while global Islamic financial assets grew by 14.9% year-on-year to $3.88 trillion in 2024, Africa’s share remained marginal due to barriers such as underdeveloped market infrastructure, limited liquidity, and low investor education.

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“To enable Sukuk and other Islamic financial 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 also highlighted the transformative role of Artificial Intelligence (AI) in reshaping ethical finance, automating compliance, and expanding financial access, while cautioning that technological adoption must be guided by strong ethical principles to maintain public trust.

Amin emphasised that collaboration and knowledge-sharing remain central to unlocking Africa’s inclusive prosperity, noting that this year’s AICIF theme “Africa Emerging: A Prosperous and Inclusive Outlook” reflects optimism about the continent’s potential for sustainable and inclusive development.

As part of efforts to promote youth innovation, she announced that the conference, in partnership with the SEC, hosted a pitch competition to support promising startups.

ZannyTecture Recycling Company Limited emerged winner in the Social Impact category for turning discarded tyres and PET bottles into eco-friendly products, while BetaLife Health won the Technology category with its AI-driven blood supply optimisation platform.

Amin also unveiled The Metropolitan Waqf, an initiative aimed at providing educational access to marginalised communities in Nigeria, particularly in conflict-affected areas.