Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has called for stronger public-private partnerships (PPPs) to expand the country’s non-interest finance sector and unlock sustainable funding for national development.
Speaking in Abuja during a meeting with a high-powered delegation from Lotus Capital Limited, led by Managing Director Mrs. Hajara Adeola, Edun praised the firm’s role in championing ethical investment models in Nigeria. He described non-interest finance—often referred to as Islamic finance—as a strategic tool for inclusive growth, poverty reduction, and economic diversification.
“Non-interest finance has a unique potential to provide capital in a manner that is ethical, transparent, and inclusive,” Edun stated. “Our focus must be on mobilising long-term funds for infrastructure, housing, and other critical projects, while ensuring that no segment of society is excluded from financial participation.”
The meeting explored innovative financing instruments, including:
A Non-Interest Real Estate Investment Fund to channel funds into housing and commercial property development.
A regular Sovereign Sukuk issuance programme, which would allow the government to raise capital from domestic and international ethical investors for infrastructure projects.
Both initiatives, Edun said, would boost market liquidity, attract foreign direct investment (FDI), and expand access to finance for individuals and communities often underserved by conventional banking.
According to the Finance Ministry, the discussions align with President Bola Tinubu’s economic vision of broadening the financial sector, fostering public-private partnerships, and exploring non-traditional capital sources to reduce reliance on volatile oil revenues.
Non-interest finance, which operates in compliance with Shariah principles by prohibiting interest (riba) and speculative transactions, has experienced rapid global growth. The Islamic Finance Development Report 2024 estimated the global Islamic finance market at $4.5 trillion, with projections to exceed $6 trillion by 2030.
Nigeria is one of Africa’s emerging markets in this space, alongside countries like Sudan, Egypt, and South Africa. Since the introduction of Sukuk bonds by the Debt Management Office (DMO) in 2017, the Nigerian government has successfully raised over ₦742 billion for road and infrastructure projects through non-interest debt instruments.
Mrs. Adeola emphasised that the sector’s growth potential is enormous, particularly with the right regulatory framework, market awareness, and collaboration between financial institutions and government agencies.
“With Nigeria’s infrastructure deficit exceeding $100 billion, non-interest finance offers a viable, sustainable, and ethical means of funding,” she said. “Global investors are increasingly seeking socially responsible investment opportunities, and Nigeria can position itself as a key destination.”
Edun stressed that government alone cannot fund Nigeria’s development needs. By partnering with the private sector, the government can leverage capital, technology, and expertise to accelerate economic growth.
In the context of non-interest finance, PPPs could:
Mobilise long-term patient capital for infrastructure.
Facilitate specialised investment funds targeting agriculture, renewable energy, and housing.
Increase financial inclusion by offering alternatives to communities hesitant about interest-based banking.
The Finance Minister also revealed plans for capacity-building programmes to train Nigerian financial professionals in Islamic finance, ensuring the sector has the expertise to compete globally.
Experts note that expanding non-interest finance can deliver wide-ranging benefits:
Economic diversification by reducing dependence on oil revenues.
Lower-cost funding for infrastructure compared to conventional borrowing.
Enhanced transparency and governance due to strict compliance and risk-sharing principles.
Job creation in construction, agriculture, and service sectors funded through ethical investments.
For citizens, it promises affordable housing finance, more accessible SME funding, and investment products aligned with cultural and religious values.
With the African Continental Free Trade Area (AfCFTA) now operational, Edun believes Nigeria has the opportunity to become a regional hub for Islamic finance in West and Central Africa.
“We must build the infrastructure, regulatory certainty, and investor confidence to make Nigeria the go-to destination for ethical finance in Africa,” he said.
The meeting concluded with a commitment from the Ministry of Finance and Lotus Capital to set up technical working groups that will fast-track the proposed initiatives and prepare a roadmap for implementation.
If successfully executed, analysts believe these measures could triple Nigeria’s non-interest finance assets by 2030 and attract billions of dollars in investment into the economy.