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By Chukwuma Umeorah
Vice President Kashim Shettima and other economic stakeholders have urged African nations to deepen the adoption of Islamic finance as a tool to bridge the continent’s estimated $170 billion annual infrastructure financing gap and promote inclusive growth.
Speaking at the 7th African International Conference on Islamic Finance (AICIF) held in Lagos on Tuesday, Shettima, represented by his Special Adviser on Economic Matters, Dr. Tope Fasua, said Africa must leverage ethical and non-interest finance models to drive sustainable development across sectors. The event was organised by Metropolitan Law and Metropolitan Skills Limited in collaboration with the Securities and Exchange Commission (SEC).
He said the continent’s economic progress must be measured not only by growth but by inclusion, adding that Islamic finance offers a credible framework for achieving shared prosperity built on ethics, fairness, and social responsibility.
According to him, Nigeria’s recent economic reforms under President Bola Tinubu’s Renewed Hope Agenda, such as unifying exchange rates, rationalising subsidies, and modernising tax systems have boosted investor confidence, raised external reserves above $40 billion, and earned favourable ratings from Fitch and Moody’s. “These outcomes reaffirm Nigeria’s position as an anchor of the AfCFTA’s $3.4trn market and a driver of Africa’s growth,” he stated.
Shettima highlighted Nigeria’s experience with Islamic finance instruments such as sukuk, takaful, murabaha, and waqf, which have been used to fund infrastructure and expand financial inclusion.
“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 is extending protection to millions of previously excluded households, while waqf endowments are being explored to support schools, hospitals, and small businesses.
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Shettima stressed that Africa’s future must be financed from within, urging policymakers to mobilise domestic capital from pension funds, sovereign wealth funds, and insurance pools through innovative instruments such as green sukuk and diaspora bonds. “Africa’s future must be financed from within, guided by principles of justice, inclusion, and sustainability,” he said.
In his remarks, SEC Chairman, 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 to fund 124 road projects nationwide.
Katuka added that Nigeria now has 19 registered halal mutual funds managing over N112 billion in assets, up from one fund in 2008, and reaffirmed the SEC’s commitment to evolving regulations to support innovations such as tokenised sukuk and blockchain-enabled transparency.
The Conference Chairperson, Ummahani Ahmad Amin, said that AICIF was created as a platform for collaboration and knowledge sharing to advance Islamic finance as a viable source of funding for Africa’s socio-economic development.
She noted that while global Islamic finance assets reached $3.88 trillion in 2024, Africa still lags behind in tapping its full potential. “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,” she added.
Also speaking, the Emir of Kano and former Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi, urged Islamic finance institutions to focus more on supporting small and medium enterprises (SMEs) and women in underserved communities as a path toward shared prosperity.
“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,” Sanusi stated. “We need to begin now to see how we can use finance to create opportunities for the small people.”
He called on Islamic financial institutions to extend their services to the grassroots and break cultural and social barriers that hinder access to finance for women. “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,” he said.
