…takeholders Urge Africa to Harness Non-Interest Finance for Sustainable Development
Vice President Kashim Shettima has called on African nations to deepen the adoption of Islamic finance as a strategic tool for inclusive and sustainable economic growth across the continent.
Speaking through his representative, Dr. Tope Fasua, Special Adviser to the President on Economic Matters, Shettima made the call while addressing delegates at the 7th African International Conference on Islamic Finance (AICIF) held in Lagos on Tuesday.
The two-day event, themed “Africa Emerging: A Prosperous and Inclusive Outlook,” was organised by Metropolitan Law and Metropolitan Skills Ltd in collaboration with the Securities and Exchange Commission (SEC) of Nigeria.
Vice President Shettima emphasised that Africa’s youthful population and demographic advantage must translate into broad-based prosperity, not limited growth. He noted that the continent’s progress will be judged by how well it promotes equity, inclusion, and sustainable wealth creation.
He highlighted Nigeria’s economic reforms under President Bola Ahmed Tinubu’s Renewed Hope Agenda including exchange rate unification, subsidy rationalisation, and customs and tax system reforms as measures that have boosted investor confidence and foreign reserves beyond $40 billion.
“These outcomes reaffirm Nigeria’s position as an anchor of the AfCFTA’s $3.4 trillion market and a driver of Africa’s economic resurgence,” Shettima said.
He described Islamic finance as a credible framework for driving shared prosperity rooted in ethics, fairness, and social responsibility.
According to him, Nigeria’s Islamic finance ecosystem anchored on sukuk, takaful, murabaha, and waqf instruments has already funded over 120 major road projects covering nearly 6,000 kilometres across the country.
“Each sukuk issuance represents a covenant between government and citizens proof that finance can build rather than burden,” he stated.
Shettima added that takaful insurance is now providing coverage for millions of previously excluded households, while waqf endowments are being explored to support schools, hospitals, and small enterprises.
“Islamic finance aligns with our conviction that enterprise must serve humanity, and that wealth must circulate to uplift communities,” he said.
The Vice President also noted that countries like Egypt, Senegal, Kenya, and South Africa are advancing regulatory frameworks to expand Islamic banking, green sukuk, and socially responsible investments.
He projected that by 2030, the share of Islamic finance in Africa’s capital markets would grow significantly, urging policymakers to sustain reforms that strengthen transparency, governance, and investor protection.
“Africa’s future must be financed from within guided by principles of justice, inclusion, and sustainability,” Shettima concluded.
Conference Chairperson, Ms. Ummahani Ahmad Amin, said the AICIF was designed as a platform for collaboration and knowledge exchange to unlock Islamic finance’s full potential in addressing Africa’s socio-economic challenges.
She noted that while global Islamic finance assets reached $3.88 trillion in 2024, Africa still lags behind in tapping into its potential to close the continent’s $170 billion annual infrastructure deficit.
She stressed the need to tackle structural barriers, including low liquidity, weak market infrastructure, and poor investor awareness, while integrating artificial intelligence responsibly to drive ethical financial innovation.
“Artificial intelligence is reshaping finance from automating compliance to personalising ethical investments. But it must be guided by strong ethical principles,” she said.
In his remarks, Mr. Mairiga Katuka, Chairman of the Securities and Exchange Commission (SEC), highlighted that Nigeria’s non-interest capital market has experienced remarkable growth under the Capital Market Master Plan (2015–2025).
He disclosed that sovereign sukuk issuances have raised over ₦1.4 trillion, funding 124 critical road projects nationwide. Nigeria now boasts 19 registered halal mutual funds managing more than ₦112 billion in assets, up from just one fund in 2008.
Katuka reaffirmed SEC’s commitment to developing new regulatory frameworks that support innovations such as tokenised sukuk, blockchain transparency, and green finance instruments.
Also speaking, the Emir of Kano and former Central Bank Governor, HRM Sanusi Lamido Sanusi, urged Islamic financial institutions to focus more on supporting small and medium-sized enterprises (SMEs) and underserved communities.
Sanusi stressed that Islamic finance would only achieve its full potential when it directly addresses financial exclusion and helps lift people out of poverty.
“We need Islamic banks that are not only big but also bold enough to build markets that deliver real value to people,” Sanusi said.
“Finance must create opportunities for the small people, for the women, and for the unbanked.”
He urged stakeholders to extend their reach to the grassroots and dismantle cultural barriers that have historically hindered women’s access to finance, adding that women’s empowerment is key to Africa’s prosperity.
Speaking at the event, Senator Iroegbu emphasized that non-interest or Islamic finance is a global financial model beneficial to both the public and private sectors, urging Nigerians to look beyond religious misconceptions and embrace its economic potential.
According to him, the Federal Government and several state governments have already leveraged non-interest financing to fund major infrastructure projects through instruments such as Sukuk bonds, which have contributed significantly to national development.
“We’ve seen how beneficial non-interest financing has been,” Senator Iroegbu said. “The Federal Government has taken advantage of it, state governments have benefited, and private business owners are also beginning to tap into it. It’s not something limited to a particular religion or government level, it’s for everyone.”
He addressed misconceptions surrounding Islamic finance, noting that while the system originated from Islamic principles, it is a universal financial practice embraced even in non-Islamic countries across the West and Asia.
“When this concept was first introduced in Nigeria, many saw it as a form of Islamization. But that’s not true. The name ‘Islamic finance’ only acknowledges its origin; it has nothing to do with religious imposition,” he explained. “It’s simply a moral and ethical form of banking that prohibits investment in harmful industries like alcohol and gambling.”
Senator further stressed that the growing adoption of non-interest financing reflects Nigeria’s recognition of its economic value and inclusiveness, rather than any religious agenda.
“What we need to do is continue to sensitize the public so people can understand and maximize its benefits,” he added. “Islamic finance has come to stay in Nigeria, and we must keep taking advantage of it as other nations are doing.”
The 7th AICIF also featured a startup pitch competition spotlighting innovative fintech solutions and an awards ceremony honouring individuals and institutions advancing the growth of Islamic finance across Africa.
Participants and speakers agreed that with the right mix of regulation, innovation, and inclusion, Islamic finance could become a cornerstone of Africa’s sustainable development and financial sovereignty.