By Abiodun JIMOH
Financial experts and stakeholders have called for wider adoption of non-interest finance in Nigeria, saying the model could promote financial inclusion, support productive sectors and provide Nigerians with greater choice in accessing capital.
The call was made at the launch of Amaanah Non-Interest Finance Company in Lagos, where speakers highlighted the economic, social and ethical dimensions of non-interest financial services.
Delivering the keynote address, Toofiq Azeez, a lecturer in the Department of English at the University of Abuja and Chief Imam of the university, described non-interest finance as more than an alternative financial product, saying it represents a philosophy built around trust, shared risk, responsible profit and social responsibility.
Azeez said Nigeria’s financial system should provide opportunities for people who, for religious, ethical or other reasons, prefer alternatives to conventional interest-based lending.
He argued that non-interest finance could help address financial exclusion by bringing more people into the formal financial system and providing financing options for entrepreneurs and businesses.
According to him, financing should be connected to real economic activity and should support sectors such as agriculture, manufacturing, housing and small businesses.
“Money must be tied to real value,” Azeez said.
He also highlighted the risk-sharing principles associated with Islamic finance structures such as Mudarabah and Musharakah, saying they could create a closer relationship between financiers and entrepreneurs.
Rather than a simple creditor-debtor relationship, he said, partnership-based financing gives both parties an interest in the success of the underlying business.
Azeez further argued that such arrangements could reduce some of the financial and psychological pressures associated with debt.
He said access to capital should also be viewed from the perspective of dignity and social wellbeing, particularly for small-business owners and individuals seeking financing for housing and other essential needs.
Although non-interest finance is rooted in Islamic financial principles, Azeez stressed that its benefits should not be restricted to Muslims.
He said Nigerians of different faiths and backgrounds who prefer financing without conventional interest should be able to access such services.
“Non-interest finance won’t start again for Muslims only. It is equitable finance for all Nigerians,” he said.
Azeez challenged Amaanah’s promoters to ensure that the principles behind non-interest finance are reflected in the company’s actual products and services.
He urged the company to build public confidence by delivering genuine value and maintaining transparency and fairness in its operations.
Kwairanga urges investment
The event was chaired by Dr. Umaru Kwairanga, Chairman of the Nigerian Exchange Group (NGX Group), who delivered a goodwill message and encouraged Nigerians to invest in the country’s economy.
Kwairanga’s participation brought a capital-market perspective to the launch, with emphasis on the importance of investment and greater participation in Nigeria’s economic development.
He joined other stakeholders in supporting initiatives aimed at expanding opportunities for Nigerians to participate in the financial system and access productive capital.
Amaanah leadership
The launch was attended by members of Amaanah’s board, management Mrs. Muhidat Bello, Mrs. Aisha Olowo and Dr. Muhammad Mamman Buba, Council of Experts and other stakeholders in the financial sector.
Their presence underscored the company’s emphasis on professional oversight and expert guidance in developing its non-interest financial services.
The Board Chairman of Amaanah Finance, Dr. Akeem Oyewale, while giving his welcome address
Stressed that greater access to ethical and inclusive financial services could help Nigerians participate more effectively in economic activity.
He expressed hope that Amaanah would contribute to financing productive sectors of the Nigerian economy and potentially provide a model for the development of non-interest finance across Africa.
Meanwhile, the company’s Managing Director and Chief Executive Officer, Dr. Adewumi Oni, gave a presentation on the company and provided an overview of all its products. alongside members of the Council of Experts.
The launch, which coincided with Nigeria’s Independence Day, gave the event an additional economic dimension as speakers linked financial independence with broader national development.
The event ended with calls for stronger collaboration among financial institutions, investors, entrepreneurs, experts and other stakeholders to expand access to capital and promote responsible financing in Nigeria.
