‘Non-interest finance catalyst to Nigeria’s growth’

The Alternative Bank (AltBank) has outlined an ambitious growth and impact agenda for 2026, positioning non-interest banking (NIB) as a catalyst for financial inclusion and sector-focused development in Nigeria.

Speaking during an interview on Islamic Finance Viewpoint, the Executive Director, South, Korede Demola-Adeniyi, said the non-interest banking sector remains largely underpenetrated, accounting for only 1.7 per cent of Nigeria’s total banking assets as of 2024, despite rising demand for  value-based financial services.

She noted that although the industry recorded modest growth in 2025, stronger advocacy, increased public education and sustained product innovation are needed to unlock its full potential.

 “Non-interest banking is not niche banking. It is banking designed for inclusion. We are not selling to Muslims alone. We are offering a value proposition that works for everyone,” Demola-Adeniyi said.

She expressed optimism that increased capitalisation and clearer regulatory frameworks expected in the new year would enable non-interest banks to play a more significant role in Nigeria’s economic transformation.

According to her, AltBank’s 2026 growth strategy will focus on sectors with high developmental impact, including healthcare, education, agriculture, renewable energy and transportation.

She added that the bank is also exploring structured participation in the creative economy through strategic partnerships, while ensuring full compliance with non-interest banking principles.

 “These are sectors that shape lives and livelihoods. Our responsibility is to design financing structures that solve real problems, not just disburse funds,” she said.

Addressing concerns around perceived over-collateralisation in non-interest banking, Demola-Adeniyi explained that the NIB model is partnership-based rather than interest-driven, emphasising transparency and shared risk between banks and customers.

She stressed the need for sustained public enlightenment to improve understanding of non-interest banking structures and their benefits.

 “The NIB model demands honesty and collaboration. When customers understand that the Bank is a partner, not just a lender, trust deepens and outcomes improve,” she said.

AltBank currently operates over 130 branches and service locations nationwide, largely through strategic partnerships.

The bank plans to expand this network to about 500 locations, alongside intensified financial literacy programmes and agent empowerment initiatives aimed at deepening financial inclusion and widening access to ethical financial services across Nigeria.

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