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AltBank’s 2026 strategy will prioritize financing in sectors that directly shape livelihoods and is also exploring structured partnerships within the creative economy, as non-interest banking continues to gain ground in Nigeria’s evolving financial space.
Despite the dominance of conventional banking, non-interest banking (NIB) is gradually emerging as a viable alternative focused on ethical finance, inclusion, and sector-driven development. The Alternative Bank (AltBank) disclosed its growth and impact plans for 2026, positioning NIB as a tool for broader economic transformation.
Speaking on Islamic Finance Viewpoint, Korede Demola-Adeniyi, Executive Director, South, said the non-interest banking sector remains largely underpenetrated. She noted that NIB accounts for just 1.7 per cent of Nigeria’s total banking assets as of 2024, despite rising interest in ethical and value-based financial services.
“Non-interest banking is not niche banking. It is ethical banking designed for inclusion. We are not selling to Muslims alone. We are offering a value proposition that works for everyone,” Demola-Adeniyi said, addressing widespread misconceptions about the sector.
She explained that although the sector recorded modest growth in 2025, significant expansion would depend on stronger advocacy, improved public education, and continuous product innovation. According to her, clearer regulations and increased capital inflow expected in 2026 could enable non-interest banks to play a more active role in national economic development.
As part of its strategy, AltBank plans to channel financing into sectors that directly impact everyday life. These include healthcare, education, agriculture, renewable energy, and transportation, which the Bank considers critical to social and economic stability.
The Bank is also considering structured partnerships within the creative economy, while ensuring that all transactions remain fully compliant with NIB principles.
“These are sectors that shape lives and livelihoods. Our responsibility is to design financing structures that solve real problems, not just disburse funds,” Demola-Adeniyi said.
Responding to concerns around overcollateralisation in non-interest banking, she clarified that NIB operates on a partnership-based model rather than interest-driven lending. She stressed that transparency and shared risk between banks and customers are key features of the system.
“The NIB model demands honesty and collaboration. When customers understand that the Bank is a partner, not just a lender, trust deepens and outcomes improve,” she added.
AltBank currently operates more than 130 branches and service points nationwide, mainly through strategic partnerships. The Bank plans to expand to 500 locations, supported by financial literacy campaigns and agent empowerment programmes to deepen financial inclusion across Nigeria.
