CFG Africa is pushing for a broader role for non-interest banking in Nigeria's financial system, arguing that larger and more frequent sukuk issuance could help unlock long-term capital for infrastructure, deepen domestic capital markets and attract investors looking for asset-backed and ethical instruments amid global volatility.
The call was a central theme at the CFG Africa Non-Interest Investment Forum held in Abuja on Thursday, as policymakers, bankers and fund managers debated how Nigeria can raise new pools of capital at a time when traditional funding sources are under pressure.
CFG Africa was formed by the merger of Maynard Partners and Concreed Capital and operates in asset management, investment banking, advisory and trusteeship.
Speaking on the sidelines of the forum, Babajid Lawani, Managing Director and Chief Executive Officer of CFG Africa, said the Group has deliberately positioned itself in the non-interest finance sector to develop products that align with ethical and trust-based investment priorities while providing competitive returns.
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“In addition to the services we provide, we are very open-minded and intellectually curious,” Lawani said. “We don't like to chase traditional things that other markets will do, and that's one of the reasons we intentionally entered the non-interest space. We think we can bring new things and new products to that market that can support investors with that orientation.”
Lawani said CFG Africa has recorded strong growth over the past five to six years, expanding “many-fold on an annual basis” as it builds customer confidence and deepens market participation. He described non-interest finance as a way of expanding Nigeria's investable capital base by accommodating investors who, for faith-based reasons, avoid traditional interest-bearing instruments.
“A space of no interest can foster inclusion,” he said. “There are people who believe that, because of their faith, they should not invest in certain traditional investments. By creating this space, you expand investable wealth around Nigeria and allow people to live a healthy life, investing according to their orientation, without feeling that they are losing out.”
The forum comes as Nigeria grapples with a lack of infrastructure, tight public finances and volatile global markets that have pushed investors towards assets considered safer and more transparent.
In his keynote address, Bashir Oshodi, Chief Executive of TrustArthur and President of the Non-Interest Financial Institutions Association of Nigeria, said rising geopolitical risks and economic uncertainty have strengthened the case for asset-backed instruments such as Sukuk.
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“Gold has increased by 60 to 80% in recent years, and has increased by about 20% this year alone,” Oshodi said. “You can no longer predict the global economy and global politics, so other asset classes are changing.”
Oshodi pointed to Nigeria's own experience as evidence of the strong appetite for well-structured tools. The country's most recent 10-year Ijarah Sukuk was oversubscribed by about 735%, reflecting the demand seen in Eurobond offerings.
According to the Debt Management Office (DMO), the issuance of Sovereign Sukuk by the Federal Government has received subscription of over 2.21 trillion Naira against the offer of 300 billion Naira.
“The sukuk market is not performing badly at all,” Oshodi said. “But issuing once a year is not enough. We must issue at least quarterly, and the size must be much larger. People will still oversubscribe.”
He argued that deeper and more frequent issuance would allow fund managers to develop secondary instruments, improve liquidity, and channel funding toward infrastructure on a larger scale. Oshodi also highlighted the structural gaps in Nigeria's non-interest ecosystem, noting that the combined assets of the sector are small compared to the handful of digitally enabled microfinance banks.
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“The assets of the three digital microfinance banks are larger than the entire non-interest banking market,” he said. “These gaps are opportunities. Technology is the growth driver, and it must happen now.”
Other speakers at the event underlined the role of non-interest finance in enforcing discipline through asset-backed structures. Amina Adebayo-Shittu, group head of compliance at Lotus Bank, said misconceptions that Shariah-compliant products yield lower returns are not supported by the data.
“In 2025, Shariah-compliant US equity funds returned between 14 and 16%, and in Nigeria, sukuk have been oversubscribed several times that much,” she said.
CFG Africa executives said the group's ethical fund was designed to address the lack of investment options in the disinterested sector and promote inclusion by investing in government sukuk, Islamic investments and ethical equities. More products will be planned as collaboration deepens across the ecosystem.
