Public policy and economic finance experts yesterday were unanimous that the emerging Islamic finance market could help to bridge Nigeria’s infrastructural gap and extend economic benefits to the generality of the people.
Experts who spoke at the 7th African International Conference on Islamic Finance (AICIF) yesterday in Lagos, agreed that Islamic finance could serve as a tool for inclusive and sustainable economic transformation across Africa.
The conference, 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).
Vice President Kashim Shettima, who was represented by Special Adviser to the President on Economic Matters, Office of the Vice President, Dr. Tope Fasua said Africa’s demographic advantage must translate into equitable prosperity, stressing that the continent’s progress will be measured not only by economic growth but also by inclusion.
He drew attention to Nigeria’s ongoing economic reforms under President Bola Tinubu’s Renewed Hope Agenda, which he said have been instrumental in restoring stability and investor confidence.
According to him, Nigeria has unified its exchange rate, rationalised subsidies, modernised tax and customs systems, and opened new gateways for trade and investment reforms. These policy measures, he said, have lifted the nation’s reserves above $40 billion and earned favourable ratings from international agencies such as Fitch and Moody’s.
“These outcomes reaffirm Nigeria’s position as an anchor of the AfCFTA’s $3.4 trillion market and a driver of Africa’s growth,” Shettima said.
He noted that Islamic finance offers a credible framework for promoting shared prosperity, rooted in ethics, fairness, and social responsibility.
He pointed out that Nigeria’s experience demonstrates the transformative potential of Islamic finance instruments such as sukuk, takaful, murabaha, and waqf, which have been used to finance critical infrastructure and expand access to inclusive financial services.
He said: “Our sukuk issuances, now in their seventh cycle, have funded more than 120 major road projects covering nearly 6,000 kilometres. Each bond represents a covenant between government and citizens, proof that finance can build rather than burden”.
He added that takaful insurance has extended protection to millions of previously excluded households, while waqf endowments are being explored to support schools, hospitals, and small businesses.
He said: “Islamic finance aligns with our conviction that enterprise must serve humanity and wealth must circulate to uplift communities”.
According to him, across Africa, countries such as Egypt, Senegal, Kenya, and South Africa are developing regulatory frameworks for Islamic banking, green sukuk, and socially responsible investments.
He projected that by 2030, the share of Islamic finance in Africa’s capital markets will expand significantly and urged policymakers to sustain reforms that strengthen transparency, governance, and investor protection.
He also called for the mobilisation of Africa’s vast domestic capital—such as pension funds, sovereign wealth funds, and insurance pools—through innovative instruments like green sukuk and diaspora bonds.
“Africa’s future must be financed from within, guided by principles of justice, inclusion, and sustainability,” Shettima said.
He urged participants to “build an Africa where enterprise and empathy coexist, where finance is not a privilege for the few but a promise to the many, and where every child, from Lagos to Lusaka, finds a stake in the continent’s future”.
Emir of Kano and former Governor of the Central Bank of Nigeria (CBN), Alhaji Sanusi Lamido Sanusi, called on Islamic finance institutions across Africa to focus more on supporting small and medium enterprises (SMEs) in underserved communities as a pathway to achieving shared prosperity and sustainable development.
He said that Islamic finance can only make a meaningful impact when it directly addresses the financial exclusion faced by small businesses and vulnerable groups.
He said: “I would be happier to see Islamic banks that are big, but more importantly, ambitious enough to grow a market that delivers real value to people and helps reduce poverty. We need to begin now to see how we can use finance to create opportunities for the small people”.
He also urged Islamic financial institutions to extend services beyond conventional models by reaching the grassroots, where the majority of Africa’s unbanked population resides.
He called for bold strategies to bridge the cultural and social barriers that have historically limited access to finance, particularly for women.
He said: “Go to the grassroots, have the courage to build and connect with the cultural conceptions and attitudes that have denied women. The empowerment of women is what will contribute to prosperity in Africa”.
Sanusi noted that inclusive finance remains central to Africa’s economic transformation.
He urged Islamic finance stakeholders to leverage their principles of equity, risk-sharing, and social responsibility to foster a more just, equitable, and prosperous continent.
Conference Chairperson, Ms. Ummahani Ahmad Amin, said that the AICIF was conceived as a platform for collaboration and knowledge sharing to advance Islamic finance as a viable alternative source of funding for Africa’s socio-economic development.
She explained that although global Islamic finance assets reached $3.88 trillion in 2024, Africa still lags in harnessing its full potential to close the continent’s annual infrastructure financing gap of up to $170 billion.
She noted that challenges such as limited liquidity, weak market infrastructure, and inadequate investor education must be addressed if Islamic finance is to reach its full potential.
She said: “Artificial intelligence is also reshaping finance across the continent, from automating compliance to personalising ethical investment, and we must ensure ethical guardrails guide its use”.
Chairman, Securities and Exchange Commission (SEC), Mr. Mairiga Katuka said Nigeria’s non-interest capital market had grown rapidly under the Capital Market Masterplan (2015–2025), with sovereign sukuk raising over N1.4 trillion and funding 124 critical road projects nationwide.
Katuka added that Nigeria now has 19 registered halal mutual funds managing over N112 billion in assets, up from just one fund in 2008.
He assured participants that the SEC remains committed to evolving regulatory frameworks to support innovations such as tokenisation, blockchain-enabled transparency, and other Islamic financial instruments.
