Nigerian Islamic Finance Industry in Infancy but Shows Growth Potential: Fitch Ratings

Fitch Ratings (Fitch) believes that Nigeria’s infant Islamic finance industry shows growth potential. The Sukuk market in Nigeria, currently in early stages of development, holds less than a 0.5% share of the global Sukuk market, according to International Islamic Financial Market's 2020 Sukuk database. The proclaimed growth potential by Fitch is based on Nigeria being the most populous country in Africa; having the fifth largest Muslim population in the world. In addition, the industry is also witnessing rising Government support. At end-2019, the African continent held less than 2% share of the Global Islamic Banking and Sukuk Market, according to Islamic Financial Services Board data.

Fitch expresses that Nigeria (rated B/Sable) has experience tapping the internationa...