The Securities and Exchange Commission (SEC) has announced that Nigeria’s non-interest capital market has achieved remarkable growth, reaching a total valuation of over N1.6 trillion.
The development reflects expanding investor confidence in ethical finance instruments and the growing acceptance of non-interest products across the financial ecosystem.
Nigeria’s Non-Interest Capital Market Records Remarkable Growth
Speaking during a joint press conference in Abuja ahead of the 7th African International Conference on Islamic Finance, scheduled for November 4–5, 2025, the Director-General of the SEC, Emomotimi Agama, said the non-interest capital market was gaining strong momentum.
Agama noted that the market’s rapid expansion was driven primarily by the Sukuk segment, which has continued to attract local and international investors due to its ethical nature and stable returns.
He revealed that the most recent Sukuk issuance by the Nigerian government was oversubscribed by more than 700 per cent, a testament to the deepening confidence investors have in Nigeria’s non-interest financial instruments.
“The non-interest capital market has attained a valuation of N1.6 trillion. The overwhelming subscription to our Sukuk issuances demonstrates strong investor confidence and an expanding demand for ethical financial instruments,” Agama said.
According to him, this growth marks an important milestone for Nigeria’s financial sector, as the country continues to position itself as a regional leader in Islamic and ethical finance.
Legal Reforms Bolster Non-Interest Capital Market Expansion
The SEC Director-General attributed the growth of the non-interest capital market to a stronger legal framework following the enactment of the Investments and Securities Act 2025, which now empowers the Commission to register and regulate non-interest collective investment schemes.
He explained that this reform was a significant step toward broadening investment options for Nigerians who prefer ethical or Sharia-compliant investment vehicles.
With the SEC now able to license more market participants in the non-interest segment, the sector is expected to attract additional inflows from institutional investors, pension funds, and retail participants.
“The new legal provisions have enhanced our regulatory reach, giving investors more assurance about the transparency, integrity, and long-term viability of non-interest instruments,” Agama added.
Conference to Drive Innovation and Ethical Investment in Africa
The upcoming African International Conference on Islamic Finance (AICIF) 2025, which will be jointly organised by the SEC, Metropolitan Law Firm, and Metropolitan Skills Limited, aims to further deepen the conversation around sustainable and ethical investment practices on the continent.
Themed “Africa Emerging: A Prosperous and Inclusive Outlook”, the conference will gather key policymakers, regulators, investors, and scholars from across Africa to discuss strategies for unlocking capital through Islamic finance principles.
Agama said the event would feature high-level discussions on infrastructure financing, green investments, agricultural development, fintech innovations, and other growth areas critical to advancing non-interest finance across Africa.
He noted that the timing of the event aligns with the conclusion of the Revised Nigerian Capital Market Masterplan (2021–2025), describing it as a strategic opportunity to chart the next phase of sustainable financial development for Nigeria and other African markets.
SEC, Stakeholders Target Broader Investor Confidence
Also speaking at the press briefing, the Managing Partner of Metropolitan Law Firm and Chairperson of the AICIF 2025 Planning Committee, Ummahani Amin, said the growing recognition of ethical finance in Africa reflects a shift towards integrity-driven investments that promote social inclusion and shared prosperity.
She emphasised that the collaboration between SEC and other partners represents a unified effort to expand the Islamic finance ecosystem in Nigeria and across Africa.
“The AICIF has become one of Africa’s most important gatherings for advancing ethical finance. Our partnership with the SEC underscores our shared vision to strengthen investor confidence, promote transparency, and support innovation in non-interest financial markets,” Amin stated.
She added that the conference would showcase Nigeria’s success story in building an ethical finance ecosystem that aligns with both religious and sustainability goals, providing models that can be replicated across Africa.
Outlook for the Non-Interest Capital Market
With the current valuation of N1.6 trillion, experts believe that Nigeria’s non-interest capital market is set to witness even faster expansion in the coming years.
The SEC’s reforms, coupled with rising demand for Sukuk and collective investment schemes, are expected to attract more foreign investors seeking stable and transparent markets.
Analysts have also projected that the non-interest capital market could surpass N2 trillion by 2026, supported by continuous government and private sector issuances of Sukuk bonds, as well as the integration of fintech-driven products that make ethical investing more accessible.
The SEC has reiterated its commitment to fostering a robust, transparent, and inclusive capital market that accommodates diverse investment preferences while promoting Nigeria as a global hub for Islamic and ethical finance.
Agama concluded, “As we continue to strengthen regulatory frameworks and deepen financial literacy, we remain confident that Nigeria’s non-interest capital market will play a leading role in driving inclusive economic growth and sustainable development across Africa.”
