Vice President Kashim Shettima and former Central Bank Governor Sanusi Lamido Sanusi have urged African nations to embrace Islamic finance as a catalyst for inclusive and sustainable growth, saying the model offers the ethical and social foundations needed to drive prosperity across the continent.
Speaking at the 7th African International Conference on Islamic Finance (AICIF) held in Lagos on Tuesday, Shettima—represented by Dr. Tope Fasua, Special Adviser to the President on Economic Matters—said Africa’s youthful population and vast resources must translate into shared prosperity rather than isolated growth. The event was organised by Metropolitan Law and Metropolitan Skills Ltd in collaboration with the Securities and Exchange Commission (SEC).
He said the administration of President Bola Tinubu, through the Renewed Hope Agenda, has implemented major reforms such as exchange rate unification, subsidy rationalisation, and modernisation of tax and customs systems—reforms that have lifted Nigeria’s external reserves above $40 billion and earned favourable credit ratings from Fitch and Moody’s. According to him, these measures have also reaffirmed Nigeria’s position as a key driver of the $3.4 trillion African Continental Free Trade Area (AfCFTA) market.
Describing Islamic finance as a credible framework for fairness and shared prosperity, Shettima noted that non-interest financial instruments such as sukuk, takaful, murabaha, and waqf have already begun transforming Nigeria’s financial landscape. He disclosed that Nigeria’s sukuk issuances, now in their seventh cycle, have funded more than 120 major road projects covering nearly 6,000 kilometres nationwide. “Each bond represents a covenant between government and citizens—proof that finance can build rather than burden,” he said.
The Vice President explained that takaful insurance has extended protection to millions of previously excluded households, while waqf endowments are supporting schools, hospitals, and small businesses. “Islamic finance aligns with our conviction that enterprise must serve humanity and that wealth must circulate to uplift communities,” he added.
Shettima called on African policymakers to expand the use of Islamic financial instruments such as green sukuk and diaspora bonds to mobilise domestic capital from pension funds, sovereign wealth funds, and insurance pools. “Africa’s future must be financed from within, guided by justice, inclusion, and sustainability,” he said. “We must build a continent where enterprise and empathy coexist, and where finance becomes a promise to the many, not a privilege for the few.”
Earlier, Ms. Ummahani Ahmad Amin, Chairperson of the AICIF, said the conference was conceived to promote collaboration and knowledge sharing across Africa’s Islamic finance ecosystem. She lamented that despite global Islamic finance assets reaching $3.88 trillion in 2024, Africa still lags in harnessing its potential to bridge the continent’s annual infrastructure financing gap of up to $170 billion. She identified limited liquidity, weak market infrastructure, and low investor education as key barriers to progress, warning that without stronger policy commitment, the continent could continue to miss out on billions in ethical investment.
She also noted that artificial intelligence is reshaping finance—from automating compliance to customising ethical investment—urging African regulators to adopt innovation without compromising Islamic finance principles.
In his address, SEC Chairman Mr. Mairiga Katuka highlighted the rapid growth of Nigeria’s non-interest capital market, saying sovereign sukuk issuances have raised over ₦1.4 trillion, funding 124 major road projects across the country. He added that the market now boasts 19 registered halal mutual funds managing more than ₦112 billion in assets, compared to a single fund in 2008. Katuka reaffirmed the SEC’s commitment to advancing regulatory frameworks that support innovation in tokenised sukuk and blockchain-enabled investments.
Delivering a stirring message, Emir of Kano and former CBN Governor, Sanusi Lamido Sanusi, urged Islamic financial institutions to focus more on small and medium enterprises (SMEs) and underserved communities. He said inclusive finance must directly address the exclusion faced by small businesses and vulnerable groups if Africa is to achieve real prosperity. “I would be happier to see Islamic banks that are not only large but also ambitious enough to deliver real value and help reduce poverty,” he said.
Sanusi called on financial institutions to break cultural and social barriers that limit women’s access to finance, noting that empowering women will significantly boost Africa’s economic growth. “Go to the grassroots, have the courage to build and connect with the cultural conceptions that have denied women. The empowerment of women will contribute to prosperity in Africa,” he said.
He emphasised that inclusive finance remains central to Africa’s transformation and urged stakeholders to apply Islamic finance principles of equity, risk-sharing, and social responsibility to create a more just and prosperous continent.
The two-day conference brought together policymakers, regulators, scholars, and investors from across Africa, featuring a startup innovation pitch for social impact enterprises and an awards ceremony recognising contributions to the growth of Islamic finance on the continent.
From Shettima’s reform-driven vision to Sanusi’s call for grassroots empowerment, the Lagos conference delivered a unified message: Islamic finance offers Africa a path to prosperity built on inclusion, ethics, and shared progress.
