* As Prof. Luqman Zakariya emerges President of Islamic Finance Scholars Forum
Alternative Bank has kicked off 2026 on a strong note for Nigeria’s Islamic capital market with the unveiling of a landmark $20 million and ₦5 billion Sukuk programme, signalling renewed momentum and innovation in the country’s non-interest financial sector.
Muslim News learnt that the Sukuk programme, announced in the first week of January 2026, is currently undergoing the mandatory Sharia compliance screening required before issuance.
The development comes days after the successful liquidation of the Federal Government of Nigeria (FGN) Sukuk II assets on December 31, 2025, which capped a strong year for the domestic Sukuk market.
Industry analysts have described the Alternative Bank Sukuk as historic for two major reasons, noting that it is the first public Sukuk to be issued in a foreign currency in Nigeria and is expected to attract new categories of investors, including dollar-based and offshore investors, into the domestic Islamic capital market.
The Sukuk is also notable for adopting a new structural model, different from those used in FGN Sukuk I–VII. Structured as an Additional Tier-1 (AT1) Mudarabah Sukuk, the issuance is considered a significant innovation that could deepen the Sukuk market and broaden its application in Nigeria and across the West African sub-region.
Market watchers say the transaction underscores the growing sophistication of Nigeria’s Islamic capital market, as operators increasingly deploy innovative instruments to meet regulatory, investor and developmental needs.
With the Alternative Bank issuance, stakeholders say the Islamic capital market has begun 2026 on a firm footing, building on the steady expansion recorded in recent years through sovereign and corporate Sukuk used largely to finance infrastructure and real sector development.
Beyond capital market developments, the new year has also seen a significant institutional milestone with the appointment of new leadership for the Islamic Finance Scholars Forum, Nigeria (IFSN).
Prof. Luqman Zakariya of the University of Abuja, who is also one of the imams of the National Mosque, Abuja, has been appointed President of the Forum, while Dr. Abdullah Lamido of Bayero University, Kano, was elected Vice President.
The IFSN Board of Trustees brings together leading academics and industry practitioners, including Prof. Saadatu H. Liman, Vice-Chancellor of Nasarawa State University; Dr. Umar Oseni, Secretary-General of the Istanbul-based OIC Arbitration Centre; Hajia Hajara Adeola, Founder and Chairperson of Lotus Bank; and Prof. AbdulRazzaq A. Alaro, who serves as Chairman of the Board.
Analysts believe that the combination of innovative Sukuk issuances and strengthened professional leadership within the Islamic finance community positions Nigeria’s non-interest finance sector for sustained growth and increased regional relevance in 2026.
Nigerian Muslim Personalities of the Year 2024/2025
Global Muslim Personalities of the Year 2024/2025
Sponsored
