• Nigeria’s BoI launches CBN-approved Islamic finance window
• Bank to offer Ijara leasing and Mudaraba contracts
• Move targets underserved businesses, expands Sharia-compliant financing

Nigeria's Bank of Industry (BoI) said on Tuesday it had received approval from the Central Bank of Nigeria (CBN) to launch an Islamic finance window. The move allows the bank to offer Sharia-compliant products based on risk-sharing principles and the prohibition of interest.

BoI can now provide products such as Ijara, an asset-backed leasing structure, and Mudaraba, a profit-sharing investment contract. These arrangements eliminate interest and rely on risk-sharing between the bank and its clients. The new window will enable the bank to diversify its financing instruments and tap a broader base of investors and borrowers.

Olasupo Olusi, Managing Director of BoI, said the approval would allow the bank to finance assets and commodities through Sharia-compliant structures. He added that the initiative would strengthen BoI’s capacity to support business segments underserved by traditional banking services.

“This development marks a significant milestone in the Bank of Industry’s growth and long-term development agenda. It positions the bank to further advance Nigeria’s sustainable and inclusive industrial development through tailored financial solutions for underserved and high-impact business segments,” Olusi said.

A Changing Financial Landscape

The launch of an Islamic window at BoI reflects a broader shift in Nigeria’s financial system. Islamic banking has been permitted in the country for more than a decade. Jaiz Bank operates as a fully-fledged Islamic bank, while several conventional institutions run Sharia-compliant windows. Since 2017, the federal government has also issued sovereign sukuk to finance infrastructure, mainly road projects.

With BoI’s entry, Islamic finance expands further into the real economy, particularly industry and small and medium-sized enterprises. The segment remains underpenetrated given the size of the population and the number of businesses operating outside the formal banking system. The initiative broadens available financing options and reinforces BoI’s position within Nigeria’s financial system.

Chamberline Moko