The Securities and Exchange Commission (SEC) has urged African nations to embrace Islamic finance to drive sustainable and inclusive economic growth.

SEC Director-General Emomotimi Agama made the appeal on Wednesday in Lagos at the 7th African International Conference on Islamic Finance (AICIF).

The two-day conference, which began on November 4, had the theme “Africa Emerging: A Prosperous and Inclusive Outlook.”

Mr Agama said the theme underscored the duty of African policymakers to ensure economic progress meaningfully improves citizens’ lives.

He said a prosperous Africa channels capital into essential infrastructure, such as roads, power plants, and digital networks that support commerce.

Mr Agama added that an inclusive Africa ensures fair access to opportunities, from rural farmers to urban technology innovators.

According to him, the Islamic finance principles of asset-backing, risk-sharing, and ethical investment align with Africa’s quest for sustainable development.

Quoting the Islamic Financial Services Industry Stability Report 2025, he said global Islamic finance assets reached $3.88 trillion in 2024.

He said Islamic capital market products, including Sukuk, Islamic mutual funds, and Sharia-compliant equities, accounted for around 30 per cent of total assets.

Mr Agama noted the sector’s strong growth outlook, with global assets projected by ICD to reach $9.7 trillion by 2029.

He highlighted milestones, including South Africa’s oversubscribed $500 million sovereign Sukuk in 2014 and its ZAR 20.4 billion issuance in 2023.

The SEC DG also cited Egypt’s $1.5 billion and $1 billion Sukuk, Kenya’s debut Sukuk, Tanzania’s new Sukuk rules, and Senegal’s ongoing issuances.

Mr Agama said Nigeria had emerged as a leader in non-interest capital markets through its Sovereign Sukuk Programme.

He said the programme had raised over N1.4 trillion since 2017, funding more than 124 major roads totalling 5,820 kilometres.

He noted that National Assembly approval for a $500 million international Sukuk reflected renewed investor confidence in Nigeria.

Mr Agama reaffirmed the SEC’s commitment to a fair and inclusive capital market under the Investments and Securities Act 2025, which enables innovation in the non-interest segment, now valued at over N1.6 trillion.

The DG added that conference discussions on infrastructure, green finance, agriculture, and fintech would shape Nigeria’s Capital Market Masterplan 2025–2035.

The conference chair, Ummahani Amin, said Africa still lags in deploying Islamic finance to bridge its $130-$170 billion annual infrastructure gap.

She listed weak market systems, low liquidity, and limited investor awareness as key barriers to growth.

Ms Amin urged policymakers to overcome these obstacles so Sukuk and similar instruments can support stability and development.

(NAN)