Nigeria's Non-Interest Finance Industry to Hit N5.77 Trillion

Nigeria's non-interest finance industry is expected to grow to N5.77 trillion by 2025. Jaiz Bank, recognized as the country's first full non-interest bank, plays a pivotal role in this sector, which includes four banks and five takaful operators.

The total assets of non-interest banks stand at N3.78 trillion, representing 65.5% of the industry's total assets, with sovereign sukuk accounting for N1.19 trillion, or 74% of the non-interest capital market. Since the issuance of sukuk began in 2013, three of Nigeria's thirty-six states have participated.

Despite the industry's growth potential, there is a noted lack of published baseline data regarding market penetration. Future growth will depend on expanding investment instruments beyond federal government securities.

The corporate sukuk market remains largely untapped, indicating a narrow pool of shariah-compliant assets. The report suggests that clearer evidence of increased market depth is needed, including the issuance of corporate sukuk by companies outside the financial services sector.