How to Identify Shari’ah-Compliant (Halal) Stocks for Ethical Investors

For Muslim investors and other ethically conscious individuals, investing in the stock market must align with Shari’ah principles. Broadly speaking, there are three reliable pathways to identify Shari’ah-compliant (Halal) stocks on the Nigerian Exchange (NGX).

1️⃣ The NGX Lotus Islamic Index (NGXLII)

One of the most straightforward methods is to rely on the NGX Lotus Islamic Index (NGXLII), a dedicated index of the Nigerian Exchange.

The NGXLII consists of 12 companies that have been screened and certified by a Shari’ah Board to ensure compliance with Islamic investment principles.

The current constituents include:

• MTN Nigeria

• BUA Foods Plc

• NAHCO Plc

• Dangote Cement Plc

• Presco Plc

• Okomu Oil Palm Plc

• Aradel Holdings Plc

• NASCON Allied Industries Plc

• Lafarge Africa Plc

• BUA Cement Plc

• Chemical and Allied Products (CAP) Plc

• Jaiz Bank Plc

For beginners, this index serves as a ready-made, professionally screened basket of Shari’ah-compliant equities.

2️⃣ AAOIFI Shari’ah Standard No. 21

For a more technical and globally recognized approach, investors can rely on AAOIFI Shari’ah Standard No. 21.

About AAOIFI

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) was established in 1991 and is headquartered in the Kingdom of Bahrain. It is the leading international non-profit organization responsible for developing and issuing standards for the global Islamic finance industry.

AAOIFI Shari’ah Standard No. 21: Financial Papers (Shares and Bonds)

This standard provides both qualitative and quantitative screening criteria to determine whether a stock qualifies as Halal.

To be considered Shari’ah-compliant, a company must pass two levels of screening:

A. Qualitative Screening (Nature of Business)

The company’s core business activity must be permissible under Islamic law.

AAOIFI explicitly prohibits companies engaged in:

• Conventional finance: Interest-based banking and conventional insurance

• Prohibited goods: Alcohol, pork products, tobacco

• Prohibited services: Gambling, casinos, adult entertainment

• Weapons: Manufacturing or trading in conventional weapons

If the core business violates these principles, the stock is immediately considered non-compliant.

B. Quantitative Screening (Financial Ratios)

If the company’s business activity is Halal, its financial structure must then pass three key ratio tests. These are calculated using the 36-month average market capitalization:

1️⃣ Debt Ratio < 30%

Total interest-bearing debt must not exceed 30% of market capitalization.

2️⃣ Liquidity Ratio < 30%

Interest-earning cash and investments must be less than 30% of market capitalization.

3️⃣ Non-compliant Income < 5%

Income derived from non-compliant activities must not exceed 5% of total revenue.

Full details of this standard can be found here:

https://aaoifi.com/ss-21-financial-paper-shares-and-bonds/?lang=en

Application of AAOIFI Standard to NGX Stocks

Suleiman Sakariyah, a Chartered Accountant, mathematician, and Islamic finance investment expert, periodically applies AAOIFI Standard No. 21 to the 144 listed NGX equities.

• In his Q2 NGX Equities Evaluation (published six months ago), 45 stocks passed the screening:

https://www.linkedin.com/feed/update/urn:li:activity:7368963820074979328/

• In his Q3 Evaluation (released two months ago), 53 stocks successfully met the AAOIFI criteria and were declared Shari’ah-compliant:

https://www.linkedin.com/feed/update/urn:li:activity:7402680375623188481/

This provides investors with an expanded and periodically updated list beyond the NGX Lotus Index.

3️⃣ Personal Evaluation

For investors with sufficient knowledge in:

• Financial statement analysis

• Market capitalization calculations

• Islamic finance principles

• AAOIFI screening methodology or other methodologies

It is entirely possible to conduct a personal Shari’ah compliance assessment.

This approach requires both qualitative judgment and quantitative analysis — similar to the work undertaken by experts like Suleiman Sakariyah.

However, it demands a solid grounding in accounting, finance, and Shari’ah screening standards to ensure accuracy.

Final Thoughts

In summary, identifying Halal stocks can be done through:

1️⃣ Relying on the NGX Lotus Islamic Index (professionally screened).

2️⃣ Applying AAOIFI Shari’ah Standard No. 21 (global benchmark criteria).

3️⃣ Conducting a personal, well-informed screening if properly equipped.

Each method offers a pathway to ethical investing while maintaining full confidence in Shari’ah compliance.

 

DAY 14: ARE YOU BUYING FROM THE "FACTORY" OR THE "SHOWROOM"?

Most people think the stock market is just about clicking "Buy" on an app. But do you know where those shares actually come from?

Tonight, we are going behind the scenes to master the Primary and Secondary Markets. Understanding this distinction is the "secret sauce" that helps elite investors position themselves for a profitable marathon while others are just guessing.

In tonight's Live Zoom Session, we will break down:

✅ IPO (Initial Public Offering): How to spot a "Ground Floor" opportunity.

✅ PO (Public Offer): When a giant decides to grow, how do you benefit?

✅ RI (Rights Issue): Why being an existing shareholder can get you a massive discount.

✅ Private Placement: The "exclusive" room where big deals happen.

If you want to move from being a "gambler" to a "strategic investor," you cannot afford to miss this session. We are shifting from "What to buy" to "How it’s built."

📍 JOIN US LIVE TONIGHT:

🗓 Day 14: Primary vs. Secondary Markets

🔗 Permanent Zoom Link: https://bit.ly/stock_basics

🆔 Meeting ID: 987 1302 4579

  Telegram Group: https://t.me/learnstockinvestmentbasics 

Come with your pens and notebooks! We will be using real-life examples like MTN, BUA Foods, Seplat, and Aradel to show you how these listings changed the game for early investors.

See you at the top! 📈

Important Update: Our Masterclass is Going Live!

To ensure you get the most practical experience, we have upgraded our daily lessons from text-based lessons to Live Zoom Sessions.

 

What’s New?

Starting from Day 12, we are now alternating our format to give you the best of both worlds:

1.    Instructional Days: Intensive lesson + short Q&A.

2.    Deep-Dive Days: Full sessions dedicated entirely to your Q&A.

 

Today is Day 13: Mastering Your Ownership Records 📂

Tonight, I will take you through a vital practical session on the CSCS (Central Securities Clearing System). This is not about your brokerage app; it’s about your legal proof of ownership. We will cover:

·         How to create your CSCS account via portal.

·         How to generate your official CSCS Statement.

·         The process of Dematerialization (converting old paper certificates into digital shares).

 

Missed Yesterday’s Session?

I provided clear demonstrations on Limit Orders and answered several critical stock questions. Catch up here:

📺 Part 1: https://youtu.be/cKihbSG6sg4

📺 Part 2: https://youtu.be/9HK1L_bDFQY

 

Tonight’s Meeting Details:

Everything happens at our permanent Zoom address:

🔗 Zoom Link: https://bit.ly/stock_basics

🆔 Meeting ID: 987 1302 4579

Don't just read about it—watch it happen live! 📈

Time: 9 pm (Nigerian time)

 

Sniper Trading: Mastering Limit Orders for Quick Wins (Day 12)

Are you ready to turn your "Buy" and "Sell" buttons into a profit machine?

Most people think you have to buy a stock and wait 5 years to see a return. While long-term investing is great, there is a hidden world of "Small & Quick Gains" that happens right in the gaps of the market.

Last night, I showed you how to use Limit and Market Orders like a professional surgeon. Tonight, we are going to get practical.

What we will cover in our "Quick Trade" Strategy Session:

• The Power of the Spread: How to spot stocks where the difference between the 'Bid' and 'Ask' is your profit zone.

• The "Penny Gap" Strategy: Using Limit Orders to buy at the floor and sell at the ceiling, even in a single day.

• Capital vs. Velocity: How to make small, consistent money daily, regardless of whether you have ₦50,000 or ₦5,000,000.

Why you must attend:

Trading isn't about luck; it's about positioning. If you don't understand how to move your bid prices up and down to match market liquidity, you are leaving money on the table for other traders to take.

I am going to show you how to find these "hidden" opportunities in real-time. Don't be a spectator. Be a player.

"The best investment you can make is in your own ability to generate income."

🚀 Join the Zoom Session tonight for FREE!

⏰ Time: 9 PM (Nigerian Time)

🔗 Link: Join Zoom Meeting

https://us05web.zoom.us/j/82205966118?pwd=De9RyOxzCBzjkv785nRgcDzbDgypHo.1

Meeting ID: 822 0596 6118

Passcode: 5VsiDe

Mastering the Stock Market Mechanics: A Deep-Dive into NGX Trading Principles

Knowledge is the difference between "gambling" and "investing." 💡

Understanding the Order Book isn't just about clicking buttons; it's about mastering the "rules of the game". Many of our 30-Day Masterclass attendees reached out saying they needed more clarity on the Day 11 lesson which was presented on Sunday.

To ensure no one is left behind in our 30-Day Masterclass, I hosted an unscheduled deep-dive Zoom session to break it all down and demystify the technical side of the NGX Trading Interface.

Missed it? No worries. I’ve recorded both sessions for you to catch up!

We took a deep dive into:

✅ Market vs. Limit Orders: Knowing when to be fast and when to be patient.

✅ The 10% Rule & Tick Sizes: Understanding price movements.

✅ Order Book Mechanics: Identifying "Full Bids" and "Full Offers." and benefiting from price-time priority.

 

If you want to navigate the market like a pro, these two recorded sessions are a must-watch.

👇 Watch the recordings here and master your trading interface:

1.    Link to session 1: https://youtu.be/GO9B3noVgcQ

2.    Link to session 2: https://youtu.be/Tl2cvxs2QZY

 

Reflections on a Moment of Grace: The NSE-EP Institutional Impact Award

It is with a heart full of humility and overwhelming gratitude that I express my profound thanks to the Nigerian Society of Engineers (NSE), Eastern Province (EP) Branch, Saudi Arabia, for honoring me as the recipient of the maiden INSTITUTIONAL IMPACT AWARD.

To be the first individual recognized under this category by the only NSE body in the Kingdom of Saudi Arabia is a distinction that deeply moves me.

My journey to this moment began on a Thursday, with a six-hour drive from Hafr Al Batin to Dammam—the vibrant heart of the Kingdom's oil capital city. The atmosphere at the 2nd Annual General Meeting (AGM) was electric, graced by esteemed dignitaries, including the acting Nigerian Ambassador to Saudi Arabia.

As I sat conversing with my dear friend and colleague, Bakano, Engr. Prof. Salisu Dan’azumi, we had just witnessed the well-deserved recognition and award of the pioneer branch chairman, Engr. Prof. Abdullahi Mas’ud, for his distinguished service. It was in that moment of celebration for others that I heard my own name called by the anchor, Engr. Dr. Mohammed Mu’azu Abdullahi.

Hearing my citation read aloud was a surreal experience. For over a decade, I have endeavored to contribute in small ways—facilitating recruitment, mentoring young engineers, and sharing my insights based on my experience in health, psychology, and now stock investments. I never imagined that these "little things" were being quietly observed and meticulously counted by others. As the anchor spoke of my impact on recruitment facilitation and mentorship, I found myself silently asking, “Is he truly describing the same Dr. Lukman I know?”

While I have received accolades in the past, this award holds a special place in my heart. It serves as a powerful reminder that our efforts, however quiet, do not go unnoticed.

Heartfelt Appreciation:

• To the Nominees & Observers: Thank you for following my trail all these years and deeming my contributions worthy of such a high honor.

• To the Leadership: My sincere thanks to the newly inaugurated Chairman, Engr. Dr. Ayuba Adeshina, and his dedicated team—especially Engr. Dr. Muhammad Alhaji Muhammad and Engr. Dr. Adeshina Adewumi—for orchestrating such a successful and memorable AGM.

• To the Media: A special thank you to Dr. Ahmed Haruna, CEO of Abbacomms, for his exceptional coverage of the event and this milestone in my professional journey.

Though I may feel small in the face of such a grand recognition, I am inspired to continue serving our professional community with even greater passion.

Watch the full citation and highlights here:

• The Full Citation

• Receiving the Award 

• Event Coverage by Abbacomms  

Photoshoots.

From Health to Wealth: My Journey from Lifestyle Medicine to Financial Literacy

For those who have followed my journey here on social media since 2019, you already know where my heart has always been — education, empowerment, and practical transformation.

I started by writing extensively on reversing type 2 diabetes, sharing real-life success stories and teaching how to effectively manage blood glucose using lifestyle enhancements alone — diet, physical exercise, emotional well-being, and stress control. Many people learned that healing is not only about drugs, but about understanding the body and living intentionally.

That same concern for emotional well-being naturally led me into mental health. Over the years, I wrote several articles on:

·         Understanding one’s personality

·         Personality psychology and clinical psychology

·         Personality disorders (narcissism, borderline, histrionic, OCPD, etc.)

·         Common mental illnesses like depression, anxiety, phobias, bipolar disorder, and related conditions

The underlying message was always the same:
👉 When you understand yourself, you make better health, emotional, and life decisions.

For the past two years, however, I went relatively quiet on one major front — not because I stopped learning, but because I entered another phase of growth: financial literacy and stock market education.

I realized something profound:
Many people fix their health, stabilize their emotions, yet remain under constant financial stress — which quietly destroys both health and mental well-being. So once again, I went back to first principles, studied patiently, invested practically, made mistakes, learned, and grew.

Today, by Allah’s grace, that journey has birthed a new chapter.

I am currently running a 30-Day FREE Masterclass on Stock Investment Basics, teaching people how the stock market works from scratch — no hype, no shortcuts, just solid understanding and financial literacy.

📊 Over 3,000+ participants are already attending (1,000+ on WhatsApp, 2,200+ on Telegram)
🕘 Holds daily at 9:00 pm (Nigerian time)
📚 Designed for absolute beginners and curious minds alike

✈️Telegram joining link: https://t.me/learnstockinvestmentbasics. Join before all empty seats are taken.  

This is not a departure from my original mission — it is an extension of it.

👉 From lifestyle enhancement advocate
👉 To mental health & self-understanding advocate
👉 Now to financial literacy advocate

Because true well-being is holistic:
Health. Mind. Emotions. Finances.

For those interested, I’ll be sharing the Day 1 to Day 4 masterclass posters. You’re warmly invited to join this learning journey — just as we’ve always done: freely, sincerely, and purposefully 🌱📈.