The Securities and Exchange Commission (SEC) has described Islamic finance as a major investment driver and a powerful instrument for deepening financial inclusion and promoting ethical growth across Nigeria and Africa.
At a joint press briefing held in Abuja on Tuesday ahead of the 7th African International Conference on Islamic Finance (AICIF), the SEC Director-General, Dr. Emomotimi Agama, said the upcoming Lagos conference would play a critical role in charting the next phase for Nigeria’s capital market as the Revised Nigerian Capital Market Masterplan (2021–2025) nears completion this December.
“This will not just be a routine conference. It is strategically positioned as we approach the conclusion of the Revised Nigerian Capital Market Masterplan,” Agama said. “The forum is about charting new directions for ethical and non-interest financial products that will power Nigeria’s next decade of growth.”
A N1.6 Trillion Market and Counting
Nigeria’s non-interest capital market, according to SEC data, has now reached a scale of ₦1.6 trillion, with Sukuk bonds emerging as the dominant instrument.
Agama revealed that the last Sukuk issuance was oversubscribed by 700%, underscoring growing investor appetite and trust in ethical financial instruments.
“The 700 per cent oversubscription of the last Sukuk issuance demonstrates massive investor confidence in our market. It reflects a robust and growing appetite for ethical and non-interest financial products,” he said.
Industry observers note that this growth places Nigeria as one of the leading Islamic finance hubs in sub-Saharan Africa, alongside Malaysia and the Middle East’s dynamic markets.
New Legal Framework for Innovation
Dr. Agama also highlighted the transformative potential of the Investments and Securities Act (ISA) 2025, recently signed into law by President Bola Tinubu.
“This Act is a game-changer,” he said. “It provides a robust statutory framework for Sukuk and other non-interest financial instruments. It empowers the SEC to register non-interest collective investment schemes, which directly fulfils the Masterplan’s objective of market development and innovation.”
Agama added that the 2025 Lagos conference would focus on unlocking ethical capital for infrastructure, energy finance, agriculture, and the role of fintech innovation in transforming the future of Islamic finance.
“The primary objective is to foster high-level collaboration that leads to harmonized policies and innovative financial solutions tailored to the needs of emerging African economies,” he stated. “Promoting financial inclusion will be a cross-cutting priority in all our discussions.”
Islamic Finance and Nigeria’s Growth Imperative
Islamic finance, also known as non-interest finance, operates on ethical principles that prohibit interest (riba) and promote risk-sharing and asset-backed investments. Its growing adoption in Nigeria aligns with the government’s push for inclusive finance and sustainable development.
According to data from the Islamic Financial Services Board (IFSB), the global Islamic finance industry surpassed $4.5 trillion in assets in 2024, with Africa contributing just over 2% — a figure analysts say could double within the next five years with proper regulatory support.
“The SEC’s commitment to Islamic finance is not only about religion or ethics,” said Dr. Aisha Salisu, a financial inclusion expert. “It’s about economic democratization — creating access to finance for millions of Nigerians who are traditionally excluded from conventional banking.”
A Platform for Policy and Partnership
The AICIF 2025, which will hold from November 4 to 5 in Lagos, is expected to attract key stakeholders from across Africa and the Middle East — including policymakers, regulators, scholars, investors, and private sector leaders.
Speaking at the same briefing, the Managing Partner of Metropolitan Law Firm and Chairman of the AICIF 2025 Planning Committee, Ummahani Amin, described the conference as one of the most influential gatherings for advancing ethical finance in Africa.
“This year, we are especially proud of our strategic partnership with the Securities and Exchange Commission,” Amin said. “It underscores our shared vision to strengthen the Islamic finance ecosystem, deepen investor confidence, and support innovation that aligns with integrity and shared prosperity.”
She explained that the 2025 edition will feature policy dialogues, technical sessions, and panel discussions on topics such as non-interest financing for infrastructure, agricultural development, and real-sector growth.
“Islamic finance has proven to be one of the fastest-growing segments of the global financial system,” Amin added. “The AICIF provides a unique platform to shape that future here on the continent.”
A Focus on Action, Not Just Dialogue
Both SEC and the organizers emphasized that this year’s conference would prioritize actionable strategies over rhetoric.
“The goal is to achieve measurable economic outcomes,” Agama said. “We expect the conference to produce strategies that will stimulate new investment flows, encourage product development, and inform the future path of regulatory policy.”
Amin concurred, noting that beyond the discussions, the event would celebrate innovation, excellence, and impact — recognizing individuals and institutions driving progress in the non-interest finance space.
Building Momentum Across the Financial Ecosystem
Earlier this year, the Central Bank of Nigeria (CBN) also signaled a renewed commitment to deepening the country’s non-interest financial market by introducing three new liquidity management instruments for Islamic financial institutions.
The move, announced in a circular dated May 23, 2025, forms part of the apex bank’s wider strategy to expand the operational efficiency and adoption of Islamic banking products across Nigeria’s financial system.
According to analysts, this coordination between the SEC and the CBN demonstrates a unified approach to financial innovation that aligns with Nigeria’s broader economic diversification goals.
“Islamic finance offers Nigeria a credible path to mobilize long-term capital for infrastructure and industrial growth,” said Professor Bashir Usman, an Islamic finance researcher at Bayero University, Kano. “It combines ethical principles with economic pragmatism — something Africa urgently needs in the face of debt challenges and limited access to traditional capital.”
Towards a More Inclusive Financial Future
As Nigeria prepares to host the 7th AICIF, expectations are high that it will go beyond symbolism and produce clear frameworks for mobilizing ethical capital, boosting investor confidence, and mainstreaming non-interest finance within Africa’s economic landscape.
For the SEC, the goal is clear — to ensure that every Nigerian, regardless of faith or financial background, has access to sustainable investment opportunities.
“The future of finance must be inclusive, transparent, and anchored on integrity,” Dr. Agama said. “That is the promise Islamic finance holds — and Nigeria is ready to lead that transformation.”
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Reporting by Emman Tochi in Lagos, Nigeria.
