Nigeria’s Non-Interest Capital Market Hits ₦1.6 Trillion, Says SEC DG Agama

By Oluwakemi Kindness

Nigeria’s non-interest capital market has grown to a valuation exceeding ₦1.6 trillion, signaling its expanding role in promoting financial inclusion and driving infrastructure development across the country.

The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, disclosed this at the 7th African International Conference on Islamic Finance (AICIF) 2025, held in Lagos on Wednesday.

He said the steady growth reflects investor confidence and the success of ongoing regulatory reforms under the Investments and Securities Act (ISA) 2025.

“The remarkable growth of the non-interest segment in Nigeria, a market now valued at over ₦1.6 trillion, is clear evidence that when there is an enabling regulatory environment, the market responds with vigour,” Dr. Agama stated.

Highlighting the achievements of Nigeria’s sovereign Sukuk programme, Agama noted that the government has raised over ₦1.4 trillion through seven issuances since 2017.

The funds have financed the construction and rehabilitation of 124 key roads covering more than 5,820 kilometres nationwide.

He also revealed that the recent approval of a $500 million international Sukuk issuance would mark a new phase in Nigeria’s strategy to attract ethical financing for infrastructure and economic development.

According to him, the growing adoption of Islamic finance across Africa demonstrates the continent’s readiness to integrate non-interest instruments into mainstream financial systems. Countries such as Egypt, Kenya, Tanzania, Senegal, and Ghana, he said, are strengthening legal and policy frameworks to attract Shariah-compliant investments.

Dr. Agama commended Metropolitan Skills for advancing Islamic finance in Africa, noting that key resolutions from the conference would feed into the upcoming Second Nigerian Capital Market Masterplan (2026–2035) as the current plan concludes this year.

He urged stakeholders to continue leveraging Islamic finance as a catalyst for ethical investment, financial inclusion, and infrastructure renewal, adding that “prosperity without inclusion is not sustainable.”

In her address, the Conference Chair, Ms. Ummahani Ahmad Amin, observed that while Islamic finance had made significant progress across Africa, the continent was yet to fully harness its potential to bridge its annual infrastructure financing gap, estimated at $130 billion to $170 billion.

She noted that despite global Islamic financial assets rising by 14.9% year-on-year to $3.88 trillion in 2024, Africa’s share remains marginal due to challenges such as limited market infrastructure, low liquidity, ad weak investor education.

“To enable Sukuk and other Islamic financial instruments serve as effective drivers of financial intermediation and macro-financial stability, we must first address the barriers that continue to constrain their growth,” Amin said.

She further highlighted the transformative role of Artificial Intelligence (AI) in reshaping ethical finance, automating compliance, and improving financial access — while cautioning that AI deployment must be guided by ethical standards to sustain public trust.

Amin emphasized the importance of collaboration and knowledge-sharing in unlocking Africa’s inclusive prosperity, noting that this year’s AICIF theme — “Africa Emerging: A Prosperous and Inclusive Outlook” — reflects optimism about the continent’s potential to drive sustainable and equitable growth.

As part of its youth empowerment agenda, the conference, in partnership with the SEC, hosted a startup pitch competition to support innovative ventures.

ZannyTecture Recycling Company Limited emerged winner in the Social Impact category for turning discarded tyres and PET bottles into eco-friendly products, while BetaLife Health clinched first place in the Technology category for its AI-driven blood supply optimization platform.

In addition, Ms. Amin unveiled The Metropolitan Waqf, an initiative designed to expand access to education for marginalized communities in Nigeria, especially those affected by conflict.