Nigerian Policymakers Back Sukuk, Green Bonds at Lagos Forum

Nigerian policymakers and investors met in Lagos in early August to argue that sukuk, green bonds, and other ethical and non-interest structures should carry more of the country’s long-term capital formation. The forum, titled “Beyond Interest: Capital, Innovation, and the Future of Wealth,” was convened by The Alternative Bank (AltBank), a non-interest lender, and drew Lagos State’s finance leadership, public officials, and executives from banking, investment management, and takaful, according to Punch, LEADERSHIP Newspapers, and Daily Post Nigeria.

The forum was a discussion event, not a policy announcement. Remarks delivered on behalf of Lagos State Governor Babajide Sanwo-Olu argued that ethical and non-interest structures tie financing to real assets and measurable outcomes, per Punch. AltBank Chairman Muhtar Bakare also spoke, per Punch, and former Lagos governor Babatunde Fashola argued for long-term investment, per LEADERSHIP Newspapers.

Lagos’s Finance Chief Delivers Sanwo-Olu’s Message

Sanwo-Olu didn’t deliver the remarks himself; they were read on his behalf by Abayomi Oluyomi, the state’s Commissioner for Finance, according to Punch and Daily Post Nigeria. The address argued, according to Punch: “The future of finance will belong to capital that is more purposeful, innovative and closely connected to productive economic activity.” It went on: “The future of development finance will increasingly draw on instruments including green bonds, sukuk and other ethical and non-interest structures that connect capital to real assets, productive activity and measurable outcomes.”

The remarks also said, per BrandCrunch Nigeria: “The future of finance is not only about the price of capital; it is increasingly about the quality of the economic activity that capital enables.” On the state’s role in reducing investment risk, the address continued, per Punch: “Government cannot eliminate every risk that investors face, but it can reduce risks arising from poor infrastructure, unclear regulation, weak coordination, unpredictable policy and institutional uncertainty. Investors do not invest in government promises. They invest in credible systems.” The remarks also referenced Lagos’s Blue Line and Red Line rail systems, per LEADERSHIP Newspapers.

AltBank’s Chairman Contrasts Extractive and Productive Capital

Muhtar Bakare, AltBank’s chairman, drew a distinction between two kinds of money. “Extractive capital treats the economy chiefly as a place from which value is harvested. It may reward its owner, but it rarely leaves the economy stronger,” he said, according to Punch. “Productive capital invests in enterprises, assets and systems that grow over time. It creates income for workers, demand for suppliers, revenue for governments and sustainable returns for investors.” In remarks carried by BrandCrunch Nigeria, Bakare said, “What we lack is not effort. We lack capital that stays long enough to turn effort into capacity, capacity into durable jobs and durable jobs into stability.”

A Non-Interest Lender’s Scale

AltBank, which grew out of a non-interest banking window that Sterling Bank opened in 2014, per BrandCrunch Nigeria, counts total assets of close to N500 billion and a customer base of nearly one million, per Nairametrics and BrandCrunch Nigeria. Abubakar Suleiman, who sits on the board of Sterling Financial Holdings Company Plc and has championed non-interest banking in Nigeria, told the forum, “The Alternative Bank has shown that non-interest banking can grow, win customers, and generate profit,” according to BrandCrunch Nigeria.

Fashola Presses the Case for Durable Assets

Babatunde Fashola, who led Lagos State as governor before serving as federal Minister of Works and Housing, argued that investment in tangible assets and community welfare yields more durable value than investment aimed at short-term returns, according to LEADERSHIP Newspapers, which summarized his remarks rather than quoting him. Other attendees included Sahara Group co-founder Tonye Cole, Sterling Bank Chairman Olatunji Mayaki, and AltBank Managing Director Hassan Yusuf, per Punch, alongside Aminu Tukur of Noor Takaful, per LEADERSHIP Newspapers. Nairametrics lists Noor Takaful and AltDrive among the event’s supporting organizations, and describes Noor Takaful as “Nigeria’s first full-fledged composite takaful operator.”

None of the five reports reviewed for this article describes a new bond, sukuk, or policy measure being announced at the forum, and BrandCrunch Nigeria places the event on a Thursday without giving a calendar date. The arguments made in Lagos were about which instruments should carry Nigeria’s long-term financing; those reports don’t record a commitment to issue any.

Frequently Asked Questions

What was The Alternative Bank’s “Beyond Interest” forum?

It was an executive forum that AltBank convened in Lagos under the theme “Beyond Interest: Capital, Innovation, and the Future of Wealth,” bringing policymakers and investors together to debate sukuk, green bonds and the supply of long-term capital, according to LEADERSHIP Newspapers.

Did Lagos Governor Babajide Sanwo-Olu deliver his own remarks at the forum?

No. He didn’t deliver them himself; the remarks were read on his behalf by Abayomi Oluyomi, the Lagos State Commissioner for Finance, according to Punch and Daily Post Nigeria.

How large is The Alternative Bank?

Nairametrics and BrandCrunch Nigeria put The Alternative Bank’s total assets at close to N500 billion, with a customer base of nearly one million. BrandCrunch Nigeria reports that the lender grew out of a non-interest window Sterling Bank opened in 2014.

What did Babatunde Fashola say about capital investment?

LEADERSHIP Newspapers reported Fashola’s argument that tangible assets and community welfare deliver more durable value than holdings built around short-term returns. The outlet summarized his remarks rather than quoting him directly.