Nigerian Government Sets Sights on $2 Trillion Islamic Finance Market

• Nigeria commits to exploring the $2 trillion Islamic finance market, leveraging instruments like Sukuk for local and international investments
• Vice President Shettima highlights the untapped potential, expressing dedication to policies that deepen and diversify the financial landscape

The Federal Government of Nigeria has declared its commitment to delving into the $2 trillion Islamic finance market by leveraging instruments such as Sukuk for both local and international investments.

Vice President Kashim Shettima made this announcement at the 6th African International Conference on Islamic Finance (AICIF) in Abuja. Represented by Tope Fasua, the Special Adviser to the President on Economic Matters, Shettima acknowledged the untapped potential of Islamic financing to catalyze a more competitive economy.

Despite the global assets under Islamic finance management surpassing $2 trillion, Shettima noted that Nigeria’s financial sector has yet to embrace Islamic financing in its market fully. He expressed the government’s dedication to formulating policies to deepen and diversify the financial landscape to unlock private-sector financing.

Shettima stated, “With global assets under management exceeding $2 trillion and the growing demand for alternative sources of financing, Islamic finance is central to both financial deepening and financial diversification in Nigeria. Hence, we will continue to explore Islamic finance tools such as Sukuk to tap into local and international investments.”

The 14th Emir of Kano, Muhammad Sanusi II, contributed to the discussion by emphasizing the urgent need for a just transition to a sustainable, net-zero future. He highlighted the historical impact of fossil fuels on climate change and urged a swift yet equitable shift toward sustainability.

Speaking on the theme “Towards a Just Transition,” Sanusi II remarked, “This transition needs to happen fast, but it also has to happen fairly and inclusively. If done right, the transition offers immense opportunities: a systems change in which all communities, workers, and countries are lifted up.”

Ummahani Amin, the convener of the conference, emphasized that the gathering aimed to fortify the community of practice promoting and developing Islamic finance for sustainable economic practices. Amin further outlined the mission to establish a sustainable endowment fund that provides educational opportunities for the less privileged.