Edun Advocates Public-Private Partnerships to Boost Non-Interest Finance in Nigeria

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has emphasised the need for stronger collaboration between the public and private sectors to accelerate the growth of non-interest financial services across the country. Speaking during a stakeholders’ engagement forum in Abuja, Edun explained that Public-Private Partnerships (PPPs) could play a transformative role in increasing access to ethical and alternative financing models, which would, in turn, foster greater financial inclusion, attract investments, and stimulate sustainable economic development.

He noted that non-interest finance, which includes Islamic banking, Sukuk bonds, Takaful insurance, and other Sharia-compliant products, has been growing in global prominence over the last decade. According to Edun, this form of finance offers an ethical and sustainable model that avoids interest-based transactions while promoting risk-sharing and fairness. This approach, he said, is particularly well-suited to Nigeria’s diverse socio-economic landscape, where many individuals and businesses remain underserved by traditional banking systems.

Edun highlighted that Nigeria’s growing Muslim population, along with a significant number of non-Muslims interested in ethical finance, represents an untapped market that could be better harnessed through strategic investment, innovation, and supportive policies. He pointed to examples from countries such as Malaysia, Indonesia, and the United Arab Emirates, where public-private collaboration has allowed non-interest finance to contribute significantly to national development.

According to him, PPPs could be instrumental in bridging funding gaps for infrastructure and development projects. By combining the government’s regulatory framework and oversight with private sector efficiency, expertise, and capital, he argued that Nigeria could expand the scope of non-interest finance to sectors such as agriculture, housing, transportation, and renewable energy. This, he explained, would not only improve access to funding for small and medium enterprises (SMEs) but also stimulate broader economic activity.

Edun stressed that the Federal Government is already committed to creating an enabling environment for the sector to thrive. This includes working with regulatory agencies like the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) to streamline approval processes, encourage product innovation, and ensure that non-interest finance adheres to global best practices. He added that policy incentives such as tax reliefs and special investment zones could be considered to attract more players into the industry.

He also called on financial institutions to create innovative, Sharia-compliant products tailored to the specific needs of farmers, low-income earners, and rural communities. Edun pointed out that by designing products that are culturally and economically relevant, the sector could drastically expand its customer base while driving socio-economic transformation in underserved areas.

Industry experts at the forum supported the minister’s stance, noting that non-interest finance is not limited to religious considerations but is increasingly viewed as a viable and sustainable model for economic growth. They stressed that instruments such as Sukuk bonds have already proven their value in Nigeria, financing critical infrastructure like roads, bridges, and public facilities. For instance, past Sukuk issuances by the Federal Government have funded hundreds of kilometres of road projects across different states, demonstrating the practical benefits of this financing model.

The experts added that Takaful, a form of cooperative insurance compliant with Islamic principles, could help improve risk management for individuals and businesses while expanding insurance penetration rates in Nigeria. They also highlighted the potential for microfinance institutions to adopt non-interest frameworks, providing much-needed funding to small-scale entrepreneurs without burdening them with interest obligations.

Edun reiterated that non-interest finance aligns with the Federal Government’s economic reform agenda, which seeks to diversify revenue sources, improve financial inclusion, and promote investments in productive sectors. He maintained that ethical finance principles—rooted in fairness, equity, and social responsibility—could help rebuild trust between financial institutions and the public, encouraging more people to participate in the formal economy.

He further explained that the government’s role in promoting PPPs would not be limited to creating regulations but would also include facilitating partnerships between domestic and international investors, development finance institutions, and local communities. These collaborations, he said, could unlock billions of naira in new investments while creating jobs and improving livelihoods.

In his closing remarks, Edun expressed optimism that Nigeria has the potential to become a leading hub for non-interest finance in Africa if it maintains the right policy direction and fosters sustained partnerships between the government and private sector players. He called on both local and foreign investors to take advantage of emerging opportunities in the space, assuring them that the Federal Government would continue to prioritise stability, transparency, and investor protection.

 

The minister concluded by affirming that deepening non-interest finance through PPPs is not merely a financial strategy but a long-term development approach that can deliver tangible benefits to millions of Nigerians. He urged stakeholders to commit to collaborative action, stressing that with the right mix of innovation, policy support, and investment, Nigeria can unlock the full potential of ethical finance to drive inclusive growth and national prosperity.