The Alternative Bank has commenced the 2026 financial year with a major move in Nigeria’s Islamic capital market, as its newly unveiled $20 million and ₦5 billion Sukuk programme undergoes the mandatory Sharia compliance screening required before issuance.
Information available to Nigeria Startup News on Monday indicates that the Sukuk programme, announced in the first week of January 2026, is currently being reviewed by relevant Sharia advisory bodies to ensure full compliance with non-interest finance principles ahead of its entry into the market.
The development follows closely on the heels of the successful liquidation of the Federal Government of Nigeria (FGN) Sukuk II assets on December 31, 2025, an event that capped a strong performance year for Nigeria’s domestic Sukuk market and reinforced confidence in non-interest capital instruments.
Industry analysts have described The Alternative Bank Sukuk as historic, citing two major factors. According to market watchers, it represents the first public Sukuk in Nigeria to be issued in a foreign currency, a move expected to draw fresh participation from dollar-based and offshore investors into the country’s Islamic capital market space.
They also noted that the Sukuk introduces a new structural model not previously deployed in the FGN Sukuk I–VII series. Structured as an Additional Tier-1 (AT1) Mudarabah Sukuk, the issuance is seen as a significant innovation that could deepen the Sukuk market and expand its use across Nigeria and the wider West African sub-region.
Market observers said the transaction reflects the growing maturity and sophistication of Nigeria’s Islamic capital market, as institutions increasingly adopt innovative products designed to meet regulatory requirements, investor expectations, and development financing needs.
With the Alternative Bank Sukuk programme entering its screening phase, stakeholders said the Islamic capital market has started 2026 on a solid footing, building on years of steady growth driven by sovereign and corporate Sukuk largely used to fund infrastructure and real sector projects.
Beyond capital market activity, 2026 has also opened with a key 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 policy.
Prof. 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. Dr. Abdullah Lamido of Bayero University, Kano, was elected Vice President.
The IFSN Board of Trustees includes 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 chairs 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 increased regional relevance in 2026.
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