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SEC DG Seeks Stakeholders Engagement to Ensure Nigeria Tap into $3.25tr Islamic Finance Industry

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Lamido Yuguda, the Director General, Securities and Exchange Commission (SEC), has called for a stronger stakeholder engagement to enable Nigeria tap deeper into the Islamic finance industry currently valued at $3.5 trillion and global sukuk issuances pegged at $182.72 billion.

To realise this, Yuguda said the Commission was strongly focused on strengthening the development of the Non-Interest Finance segment in Nigeria by collaborating with the Islamic Financial Services Board (IFSB), an international standard-setting body.

The SEC boss stated these in Abuja on Wednesday at the first annual SEC-IFSB international forum on non-interest capital market.

Yuguda, while acknowledging IFSB’s pivotal roles in ensuring stability and resilience in the Islamic finance segment globally, said the body has also been of immense help to SEC Nigeria and indeed all other IFSB members in Nigeria in capacity building, technical support, and global visibility.

He revealed that the Islamic finance segment of the financial industry in Nigeria reached an estimated size of $2.9 billion as at the end of 2022, with outstanding sukuk forming the largest part at 57%, followed by Islamic banks at 42% (total assets), and the remaining 1% split between Islamic funds (total assets) and takaful (total contributions).

“This shows that the Nigerian market makes up just 0.9% of the global non-interest market, indicating the dire need for more growth. With the country boasting a large population and a significant proportion unbanked, the long-term potential for Islamic finance in Nigeria is immense.

The Non-Interest (Islamic) Capital Market in Nigeria has undergone transformational growth, becoming an integral part of our financial framework, offering a distinctive platform for ethical and Shari’ah-compliant investments.

“Since the debut of Sukuk in Nigeria in 2017, the Debt Management Office has raised almost N1 trillion to finance over 5,000 kilometres of critical roads & bridges with all such issuances oversubscribed.

The oversubscription of the most recent 6th Federal Government of Nigeria Sukuk by 435% underscores investor confidence, showcasing the strategic role of Sukuk in infrastructure development and financial inclusion.

“The Pension Industry’s Fund VI is presently not able to find enough instruments to fill its demand. This means that there is ready demand for sukuk issuances.

“Why are we not maximizing the potential. This brings us to the challenge of low awareness. This is one of the reasons for this forum and other efforts the SEC and other regulatory bodies attending this forum must continue to work towards exploring the full potential of this segment of the market.

“SEC Nigeria has a 10-year (2015-2025) Capital Market Masterplan which was revised in November 2022. The attainment of the Masterplan targets by 2025 remains a challenging distance.

These targets encompass the introduction of 100 retail Shari’ah-compliant products, the attracting at least 1 million retail investors in Shari’ah-compliant products, the securing of at least N5 trillion in investments from institutional investors in Shari’ah-compliant products, and the facilitation of 50 listings of Shari’ah-compliant products with a market capitalization of no less than N5 trillion by 2025”, he explained.

In his keynote address, Dr. Bello Lawal Danbatta, Secretary-General of IFSB noted that 2023 has been marked by a tumultuous series of events but expressed joy Nigeria and other economies showed strong resilience in the face of daunting adversities.

He added that the challenges present significant potential for the non-interest and Shariah-compliant financial services industry to drive the sustainable development agenda.

Danbatta said the optimism was hinged on the limited exposure of many non-interest financial services industry to global conflicts, gradual recovery and reopening of economies, an accelerated digital transformation process, the improved financial soundness and resilience in advancing inclusive and sustainable socio-economic growth.

“The non-interest financial system, with its emphasis on risk-sharing, asset-backed arrangements, and project-specific execution, naturally aligns with public-private partnerships in the infrastructure sector.

“Moreover, non-interest finance offers flexibility, demonstrated by the diverse structures available for those seeking financial backing. For example, it can be transformed into marketable credit instruments, such as Sukuk, linked to specific assets,” he explained.

 


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New Horizons Invests N50m to Empower Almajiris with Skills

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New Horizons Nigeria has launched a N50 million initiative aimed at transforming 21 Almajiri children into skilled computer technicians within 90 days, to tackle youth unemployment and harness human potential.

The Almajiri-to-Tech programme, officially launched in Abuja on Monday, provides participants with full training, meals, clothing, tools, and logistics support, all fully funded.

Speaking at the launch, the Chief Executive Officer of New Horizons, Tim Akano, said the programme represents a new journey in the history of Nigeria by restoring the original purpose of the Almajiri system, which he described as “children sent out to seek knowledge.”

“The word Almajiri comes from an Arabic term meaning emigrant and seeker of knowledge. Historically, children were sent to learn morals, responsibility, and skills to add value to society,” Akano said.

He added that the disruption of this system during colonial times forced many children onto the streets, a challenge that persists today.

Akano highlighted the urgency of addressing the Almajiri issue, noting that there are an estimated 15 million Almajiris in the country, with a population growth rate of around three per cent annually.

“If we do not solve this problem as a country, we are sitting on a time bomb,” he warned.

According to him, the programme focuses on hands-on technical skills rather than theory. Trainees will learn to repair mobile phones, laptops, televisions, radios, standing fans, and other electronic devices, as well as build inverter batteries using recycled electronic waste.

“We are not teaching theory. We are teaching practical skills you can use to earn a living,” Akano said, stressing that the programme will not interfere with the participants’ Quranic education.

“We are still going to allow you, within the period of learning. Your learning computer here is not stopping your Quranic education.

“You still have time within our space here. Whenever you want to go and pray, you can pray, then come back to class,” the CEO stressed.

He added that participants will also receive daily meals, water, T-shirts identifying them as technicians-in-training, and access to all necessary tools and equipment throughout the 90-day programme.

Akano said the initiative is part of a larger mission by New Horizons Nigeria, which has spent the past 21 years training about 100,000 Nigerians annually in IT and related skills.

He said the new programme aims to “take human genius off the streets and convert it into human capital, enabling these youths to contribute meaningfully to the economy.”

He added that equipping Almajiris with skills could add 15 million people to Nigeria’s workforce and potentially increase the country’s GDP by as much as $20 billion, stressing that productivity depends on practical skills and opportunity.

“Everything that can be taught can be learned. If someone can memorize the Quran cover to cover, there is nothing that cannot be done. What they lack is information, opportunity, and infrastructure, and we are providing all of that,” Akano said.

Akano also stressed that the initiative is designed to inspire other organizations and government agencies to replicate similar programmes across the country.

“This is not just about 21 children; it is about showing Nigeria what is possible when resources meet intention and planning.

“If we succeed in empowering these Almajiris, we demonstrate that the country can turn social challenges into economic opportunities. It’s a blueprint for Nigeria’s future,” he said, noting that the initiative combines social reform, technical education, and economic empowerment.

Also speaking, one of the trainees, Fatima Umar, appreciated the organisers and promised to maximise the opportunity.

“We’ll make you proud of us. We have nothing to say here but to thank and appreciate you. May Almighty Allah continue to guide and protect you,” Umar said.


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IMF Upgrades Nigeria’s 2026 Growth Projection to 4.4%

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International Monetary Fund has upgraded Nigeria’s 2026 economic growth projection to 4.4 per cent, reflecting improved macroeconomic stability and sustained reforms.

IMF Upgrades Nigeria’s 2026 Growth Projection to 4.4%

IMF

The January 2026 World Economic Outlook Update forecasts Nigeria’s growth trajectory at 4.1 per cent in 2024, 4.2 per cent in 2025, and 4.4 per cent in 2026—a 0.2 percentage point increase from the October 2025 estimate.

This aligns with sub-Saharan Africa’s projected 4.6 per cent expansion in 2026 and 2027, driven by regional stabilisation efforts.

Globally, the IMF anticipates 3.3 per cent growth amid resilient conditions tempered by trade policy shifts and technology investments. For Nigeria, declining energy prices—expected to fall seven per cent due to weak demand—pose risks, though OPEC+ coordination and China’s stockpiling provide support.

Despite the optimism, downside risks persist from Middle East and Ukraine tensions, protectionism, high debt, and fiscal deficits. The Fund recommends rebuilding fiscal buffers, ensuring central bank independence, and limiting temporary fiscal measures to maintain stability.

Nigeria’s success hinges on consistent reforms and resilience against domestic and global shocks, the IMF concluded.


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Nigeria’s Crude Output Falls to 1.486mbpd in November – OPEC

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Organisation of Petroleum Exporting Countries (OPEC) reports that Nigeria’s crude oil production, excluding condensate, dropped by 0.7 per cent to 1.486 million barrels per day (mbpd) in November 2025 from 1.496 mbpd in October.

Nigeria’s Crude Output Falls to 1.486mbpd in November – OPEC

OPEC

The figure, drawn from secondary sources in OPEC’s December 2025 Monthly Oil Market Report, fell short of Nigeria’s 1.5 mbpd quota. Direct communication data showed output at 1.436 mbpd, up from October’s 1.401 mbpd, but still below target.

Nigeria produces around 196,028 bpd of condensate, excluded from quota calculations per Nigerian Upstream Petroleum Regulatory Commission figures. Year-on-year, November’s output marked a slight gain over 1.417 mbpd in November 2024.

Expert Cites Insecurity, Governance Gaps

Petroleum economics expert Wumi Iledare described the quota miss as unsurprising, blaming persistent insecurity, an ageing oil basin lacking new finds, and unoffered hydrocarbon blocks. Governance shortcomings and policy uncertainty further erode investor confidence, he noted.

Selective implementation of the Petroleum Industry Act worsens the situation, with Nigeria needing a single authoritative leader for the sector rather than multiple proxies, Mr Iledare stressed. The country has struggled to consistently hit OPEC targets for years.


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