The Alternative Bank has begun the 2026 financial year with a notable development in Nigeria’s Islamic capital market, as its newly announced $20 million and ₦5 billion Sukuk programme enters the mandatory Sharia compliance screening stage ahead of issuance. The screening is a key regulatory requirement to ensure that the Sukuk fully adheres to non-interest and Sharia-compliant finance principles before being offered to investors.
Information indicates that the Sukuk programme, which was unveiled in the first week of January 2026, is currently under review by relevant Sharia advisory bodies. This process is aimed at confirming that the structure, use of proceeds, and contractual arrangements align with Islamic finance guidelines prior to market entry.
The development follows closely on the successful liquidation of the Federal Government of Nigeria (FGN) Sukuk II assets on December 31, 2025. That milestone concluded a strong year for Nigeria’s domestic Sukuk market and further strengthened confidence in non-interest capital market instruments among local and international investors.
Industry analysts have described The Alternative Bank Sukuk as historic for two major reasons. It is expected to be the first publicly issued Sukuk in Nigeria denominated in a foreign currency, a move that could attract increased participation from dollar-based and offshore investors and broaden the investor base of the country’s Islamic capital market.
In addition, the Sukuk introduces a structural model not previously used in Nigeria’s sovereign Sukuk issuances. Structured as an Additional Tier-1 (AT1) Mudarabah Sukuk, the transaction is viewed as a significant innovation that could deepen the Sukuk market and expand its application across Nigeria and the wider West African region.
Market observers say the issuance reflects the growing maturity and sophistication of Nigeria’s Islamic capital market, as financial institutions increasingly adopt innovative products designed to meet regulatory requirements, investor expectations, and development financing needs.
With The Alternative Bank Sukuk programme now entering the screening phase, stakeholders note that Nigeria’s Islamic capital market has started 2026 on a strong footing. This momentum builds on years of steady growth driven by sovereign and corporate Sukuk issuances, which have largely been used to finance infrastructure and real sector projects.
Beyond capital market activity, the year has also opened with an important institutional development in the Islamic finance ecosystem. New leadership has been announced for the Islamic Finance Scholars Forum, Nigeria (IFSN), a body that brings together experts in Sharia, finance, and public policy.
Professor Luqman Zakariya of the University of Abuja, who also serves as one of the imams of the National Mosque, Abuja, has been appointed President of the Forum, while Dr. Abdullah Lamido of Bayero University, Kano, has been elected Vice President. The IFSN Board of Trustees includes leading academics and industry professionals such as Prof. Saadatu H. Liman, Vice-Chancellor of Nasarawa State University; Dr. Umar Oseni, Secretary-General of the OIC Arbitration Centre in Istanbul; Hajia Hajara Adeola, Founder and Chairperson of Lotus Bank; and Prof. AbdulRazzaq A. Alaro, who serves as Chairman of the Board.
Analysts say the combination of innovative Sukuk structures and strengthened professional leadership positions Nigeria’s non-interest finance sector for sustained growth and greater regional relevance throughout 2026 and beyond.