Nigeria's non-interest capital market has surged to a valuation exceeding ₦1.6trn, reflecting growing investor confidence and the success of ongoing regulatory reforms aimed at deepening financial inclusion and funding critical infrastructure projects.
The Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, disclosed this while speaking at the 7th African International Conference on Islamic Finance (AICIF) 2025, held in Lagos.
He described the milestone as a testament to the resilience of ethical finance and the Commission's commitment to fostering an enabling environment for its expansion.
"The remarkable growth of the non-interest segment in Nigeria, a market now valued at over ₦1.6trn, is clear evidence that when there is an enabling regulatory environment, the market responds with vigour," Agama said.
He explained that Nigeria's sovereign Sukuk programme, introduced in 2017, has so far raised over ₦1.4trn through seven issuances.
The proceeds, according to him, have been used to construct and rehabilitate 124 critical roads spanning more than 5,820 kilometres nationwide, significantly contributing to infrastructure renewal and economic development.
Agama further revealed that the Federal Government recently secured approval for a $500m international Sukuk issuance, marking the next phase of Nigeria's strategy to attract ethical financing for infrastructure and sustainable growth.
He added that this expansion aligns with the provisions of the newly enacted Investments and Securities Act (ISA) 2025, which strengthens the regulatory framework for capital market development.
The SEC boss emphasised that the rapid growth of Islamic finance across Africa signals the continent's readiness to embrace non-interest instruments as viable alternatives for mobilising development finance.
He cited Egypt, Kenya, Tanzania, Senegal, and Ghana as examples of countries reforming their legal and policy frameworks to attract Shariah-compliant investments.
Agama commended Metropolitan Skills, organisers of AICIF, for their contribution to the development of Islamic finance in Nigeria and across the continent.
He also disclosed that key resolutions from the conference would inform the implementation of the Second Nigerian Capital Market Masterplan (2026-2035), as the first 10-year plan concludes this year.
"Islamic finance remains a strong tool for ethical investment, financial inclusion, and infrastructure renewal," he said, adding that "prosperity without inclusion is not sustainable."
In her address, the Conference Chair, Ms Ummahani Ahmad Amin, noted that while Islamic finance has made significant progress in Nigeria and across Africa, the continent is yet to fully harness its potential as a reliable source of catalytic capital for closing its annual infrastructure financing gap, estimated at between $130bn and $170bn.
She observed that although global Islamic financial assets rose by 14.9 per cent year-on-year to reach $3.88trn in 2024, Africa's share remains marginal due to underdeveloped market infrastructure, limited liquidity, and low investor education.
"To enable Sukuk and other Islamic financial instruments to serve as effective drivers of financial intermediation and macro-financial stability, we must first address the barriers that continue to constrain their growth," Amin stated.
She also highlighted the transformative potential of Artificial Intelligence (AI) in reshaping ethical finance through automated compliance and broader financial inclusion, while cautioning that technological adoption must remain guided by strong ethical guardrails to sustain trust and integrity.