Financial experts have identified growing opportunities in Nigeria’s non interest financial market, saying the segment could play a major role in expanding financial inclusion and attracting ethical investment.
Non interest finance, often associated with Islamic banking principles, operates on profit sharing and asset backed transactions rather than conventional interest based lending. Industry analysts say the model appeals not only to religious considerations but also to investors seeking transparent and risk sharing structures.
At a recent finance forum in Abuja, speakers noted that Nigeria’s large unbanked population presents strong potential for non interest banking institutions. Many individuals and small businesses avoid conventional banking due to interest related concerns or lack of access to suitable financial products.
Experts said products such as sukuk bonds, non interest microfinance, and partnership based financing can support infrastructure, housing, and small business growth. Nigeria has already issued sovereign sukuk in recent years to fund road projects, demonstrating practical application of the model.
Market observers believe the segment remains underdeveloped compared to its potential. They cited limited public awareness, regulatory bottlenecks, and a shortage of skilled professionals as factors slowing expansion.
The Central Bank and other regulators have introduced frameworks to support non interest institutions, but stakeholders say more policy clarity and investor education are needed. Expanding digital financial services tailored to non interest principles could also accelerate growth.
Entrepreneurs in agriculture, manufacturing, and trade were identified as key beneficiaries of partnership based financing structures that share risks and returns between lenders and borrowers.
As Nigeria seeks to diversify its financial system and deepen inclusion, experts argue that non interest finance offers a complementary pathway that can mobilise capital, support ethical investment, and broaden access to formal financial services.
