Islamic Finance Assets Projected to Reach $3.69trn by 2024


Thursday, January 07, 2021/ 11:19 AM / Bukola Akinyele-Yisau for WebTV / Header Image Credit: GCC Business

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Social distancing, resulting from the coronavirus pandemic, is likely to be the catalyst for Islamic banks across many countries to accelerate their digital transformation strategies, especially with financial inclusion being a major issue in many of the countries where Islamic finance is active. 


From the State of the Global  Islamic Economy 2020/2021 Report, the COVID-19 pandemic halted the growth of the Islamic finance sector but stimulated the development of more inclusive and socially driven finance, whether through crowdfunding, public-private partnerships, or support for SMEs.  


The report estimates that the value of Islamic finance assets increased by 13.9% to $2.88 trillion in 2019 from $2.52 trillion in 2018. Iran, Saudi Arabia, and Malaysia rank as the top three countries by the value of Islamic finance assets and retain their positions from last year. Due to the impact of the COVID-19 crisis, the value of Islamic finance assets is expected to show no significant growth in 2020 but is expected to rebound and grow at a CAGR of 5% from 2020 onwards to reach $3.69 trillion by 2024. 


Despite the Covid-19 Pandemic, Here are some of the Islamic Finance activities that occurred in Nigeria in 2020.



  • February 2020,  a total of NGN1b (US$2.74m) in two-year interest-free loans was disbursed to over 5,000 traders in Sokoto State under the trader loan scheme. 30% of the loans were earmarked for women.
  • Giginya Microfinance Bank was launched in Sokoto in 2020.



  • In May 2020, the CBN revised the deadlines for Microfinance banks to comply with the minimum capital requirements. The new deadlines were assigned to microfinance banks in different tiers and ranged from April 2021 to April 2022
  • The DMO announced its plan to raise to  N150billion (US$383.02m) through Sukuk before July to fund the construction of 44 road project



  • In June 2020, the CBN revealed plans to update a regulatory framework to integrate a non-interest window in all its intervention programs to support SMEs affected  by the covid19 pandemic
  • The Islamic Development Bank (IsDB) raised $1.5bn with a first Sukuk of sustainability designed to support member countries experiencing the COVID 19 Pandemic.
  • The IsDB's Islamic Corporation for the insurance of investment and Export Credit  (ICIEC), among other organisations, provided insurance for Nigeria's US$1.2billion in-kind loan from Brazil for the Green Initiative.
  • IFSB admitted the Nigerian Securities and Exchange  Commission (SEC) into its Membership during its 36th Meeting of the Council and 18th General Assembly on the 4th of June
  • President Muhammadu Buhari requested the approval of the house of representatives for a borrowed of US$5.5billion from external sources to implement the country's 2020 budget. The sum included US$1.13m borrowed from the ISDB, which supported Nigeria with US$600m due to the impact of Covid19
  • Nigeria Minister of Works and Housing Mr. Babatunde Raji Fashola received a sovereign Sukuk Symbolic Cheque of N162.557bn for the construction of 44 roads across the country.
  • Jaiz Bank Plc hosted its 8th AGM  and paid its first-ever dividend to shareholders which gulped N884m. 
  • CBN Launched New Non-Interest Finance Schemes for Its Intervention Programmes
  • Fintech Lending Company Kiakia launched an Android-based app to allow Halal Financing

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  • In August 2020, TajBank Expanded its Operation In Nigeria, by Launching its Sokoto Branch



  • In September 2020, the CBN decided that in line with market developments, interests on local currency savings deposits are negotiable but subjected to a minimum of 10% per annum of the monetary policy rate
  • The US$95 million Agro- Pastrol Development Project financed by the IsDB in partnership with the Life and Livelihoods fund was launched in Kano to support the State's agricultural productivity and competitiveness
  • Jigawa State government secured a US$37.37m facility from the IsDB to support Microfinance banks in enabling farmers to access loans at an affordable  rate 
  • TeamApt  a fintech start-up in Nigeria is developing technology to enable non-interest financing, SMEs in 2020/2021 upon receipt of regulatory approval
  • The National Hajj Commission (NAHCON) In partnership with Jaiz Bank launched the Hajj savings scheme in the city of Kano for Muslims in Nigeria to perform their annual Hajj pilgrimage to Saudi Arabia with ease.


  • On November  12, 2020, President Muhammadu Buhari signed the Banks and Other Financial Institutions Act (BOFIA) 2020 into law to strengthen confidence in the banking sector and enhance the soundness and resilience of Nigeria's financial system.  


  • United Capital launched its first-ever "Sukuk Fund" designed to deepen the non-interest finance market in Nigeria.

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