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From Adanna Nnamani, Abuja
Nigeria is positioning itself to play a bigger role in Africa’s Islamic and ethical finance market as the country’s non-interest finance sector continues to expand, with industry players projecting greater opportunities in banking, investment, insurance, microfinance and fintech.
The development comes as Nigeria’s Islamic and non-interest finance industry was valued at N5.77 trillion in 2025, with sovereign Sukuk accounting for N1.19 trillion, according to a Proshare report cited by Shariah Adviser to OpenSpace, Zubair Mughal.
Mughal, who spoke at an OpenSpace press conference in Abuja on Tuesday, said Nigeria had the potential to become a leading Islamic and ethical finance hub in West Africa, given its large population, entrepreneurial base, deepening capital market and growing demand for non-interest financial products.
He said Islamic finance had moved beyond a niche faith-based alternative, with its principles of asset-backing, transparency, fairness, risk-sharing and ethical investment gaining wider acceptance globally.
According to him, global Islamic finance assets reached about $5.98 trillion in 2024, bringing the industry close to the $6 trillion mark, noting that the sector is increasingly relevant to African economies seeking alternative sources of financing for infrastructure, SMEs, agriculture, housing, trade and financial inclusion.
Mughal noted that Nigeria’s regulatory framework had also continued to develop, with the Central Bank of Nigeria supporting non-interest banking while the Securities and Exchange Commission had played a role in developing the country’s Sukuk market.
He said the next phase of growth would depend on practical, accessible and technology-driven solutions capable of taking Islamic finance beyond traditional banking channels.
“Fintech can reduce transaction costs, simplify customer onboarding, improve transparency and make ethical financial products available to households, SMEs, market traders and young entrepreneurs,” he said.
Against this backdrop, Mughal said OpenSpace was developing a range of non-interest financial products, including Murabaha, Ijarah and Diminishing Musharakah.
He explained that Murabaha would allow customers to acquire goods and business assets through a disclosed cost-plus-profit structure, while Ijarah would enable customers to access productive assets through leasing. Diminishing Musharakah, he added, would provide a gradual ownership model under which customers could progressively acquire an asset from a financier.
Mughal also disclosed that OpenSpace planned to obtain the appropriate regulatory licences for non-interest financing, after which it could explore the issuance of Sukuk.
He said a Sukuk issuance by a fintech-driven institution could broaden investment opportunities, support business expansion and deepen Nigeria’s non-interest capital market.
Also speaking, Chief Executive Officer of OpenSpace, Titus Adakole Ikeh, said the company was entering ethical finance with the objective of making financial services more accessible, transparent and relevant to underserved Nigerians.
Ikeh said ethical finance should go beyond transactions to help individuals and businesses make better financial decisions, acquire assets, grow businesses and build wealth. He said the company’s proposition was based on principles including fairness, transparency, accountability and trust, adding that ethical finance should serve people regardless of their religious or financial background.
According to him, OpenSpace’s Mudaraba proposition will allow customers to provide capital while the company acts as investment manager, deploying funds into Shariah-compliant investment opportunities and sharing realised profits according to an agreed ratio.
Ikeh said the company was also integrating artificial intelligence into its financial ecosystem to improve customer experiences, decision-making and access to financial services.
He said the platform was built around a single customer financial core comprising a unified customer information file, wallet engine and investment pool engine.
The CEO added that OpenSpace was incorporating automated Know-Your-Customer verification, customer assessment, payment collection, digital documentation and electronic signatures into its operations.
He said AI and machine learning would also be applied to customer analytics, portfolio monitoring, anomaly detection and personalised financial services.
Ikeh said the company’s ambition was to make financial inclusion more meaningful by enabling small businesses to obtain productive equipment, individuals to work towards asset ownership and customers to save and invest according to their values.
