Halal Investment Options In Nigeria — Grow Your Wealth The Halal Way

In today’s Nigeria, you can grow your money without compromising your faith.

From the Nigerian Exchange (NGX) to apps like Afrinvest and Cowrywise, there are now multiple Shariah-compliant (Halal) investment options available for Muslims and ethically conscious investors.

Here’s a breakdown 👇

⿡ Halal Stocks on NGX

Invest directly in companies that meet Islamic finance criteria — free from interest-based banking, gambling, alcohol, and other non-halal activities.

You can find these through the NGX-Lotus Islamic Index (NGX-LII) — a dedicated index tracking Shariah-compliant stocks listed on the Nigerian Exchange screened by a Shari’ah board.

💡 Examples of top-performing Shariah-compliant equities are included in this index and can be accessed via brokers that trade NGX stocks. Currently, there are 11 companies in this index: Dangote Cement, Jaiz Bank, Bua Foods, MTN, NAHCO, NASCON, Lafarge, Aradel, Okomu Oil Palm, etc. There’s no minimum investment amount for these stocks. 

⿢ Halal Exchange Traded Fund (ETF)

An Exchange-Traded Fund (ETF) is a basket of securities—like stocks or bonds—pooled into a single investment that trades on an exchange like a stock, allowing investors to buy and sell shares throughout the day while enjoying diversification and low fees.

🔹 Lotus Halal Equity ETF (LOTUSHAL15)

• Managed by Lotus Capital Limited

• Tracks the NSE Lotus Islamic Index (NSE-LII)

• Invests in screened Nigerian companies following Islamic principles

• Accessible via any broker or app connected to NGX, like Meristem/Cowrywise, United Capital, etc.

• United Capital, a stockbroker, has a Non-Interest market segment which consists of LOTUSHAL15, Jaiz Bank and Tajsuks1 (another Islamic bank, Taj Bank)

• There’s no minimum investment amount. Current market price per share is around ₦75.

✅ Perfect for those who want diversified exposure to halal stocks in one click.

⿣ Halal Mutual Funds (Professionally Managed Portfolios)

A Mutual Fund is a professionally managed pool of money from many investors that’s collectively invested in diversified assets such as stocks, bonds, or Sukuk. 

🟢 Afrinvest Halal Fund

• Managed by Afrinvest Asset Management

• Open-ended mutual fund investing in Sukuk, Shariah-compliant equities, and non-interest bank deposits

• Minimum investment: ₦1,000

• Benchmark returns: ~19% per annum (varies with market)

📱 Available on: Afrinvest and Cowrywise apps

🟢 FSDH Halal Fund

• Managed by FSDH Asset Management

• Invests primarily in Sukuk and other fixed-income halal instruments

• Minimum investment: ₦5,000

• Returns: ~15–17% p.a. (fixed-income style)

• Focus: Beat inflation with stable, ethical returns

📱 Available on: FSDH platform

🟢 Stanbic IBTC Shari’ah Fixed Income Fund

• Invests 70%+ in Sukuk and 30% in other halal instruments

• Offers relatively low-risk exposure

• Ideal for investors seeking steady halal income

• Minimum investment: ₦5,000

• Returns: ~15% p.a.

📱 Available on: StanbicIBTC app

🟢 Lotus Halal Fixed Income/Investment Fund

• Managed by Lotus Capital Ltd

• Flexible minimums (retail-friendly)

• Typical returns: 11–20% depending on the market

• Return is paid quarterly for the fixed income and yearly for the investment fund  

• Suitable for those who want halal steady growth without volatility.

📱 Available on: Cowrywise app

⿤ Sukuk (Islamic Bonds)

A bond is a certificate representing a debt where an investor lends money to a borrower (like a government or company) in exchange for periodic interest payments and the repayment of the principal on a maturity date.

A Sukuk is an Islamic financial certificate that represents fractional ownership in a tangible asset or business venture, providing the holder with a share of the profits or rental income generated by that asset instead of interest.

If you prefer fixed, predictable returns, these halal bonds are great:

🇳🇬 FGN Sukuk (Government Islamic Bond)

• Offered by Debt Management Office (DMO)

• Minimum: ₦10,000 (in multiples of ₦1,000)

• Return: ~19.75% per annum, paid twice yearly

• Available through banks, brokers, or SEC-approved agents

🏦 TAJBank Mudarabah Sukuk Bond

• Offered by TAJBank

• Minimum: ₦100,000

• Return: ~20.5% per annum

• Available during offer periods directly from TAJBank

How to Start Investing (Step-by-Step)

⿡ Choose your halal option (Stocks, ETF, Sukuk, or Mutual Fund)

⿢ Confirm it’s Shariah-certified (all listed above are screened)

⿣ Open an account via the fund manager, Afrinvest, Cowrywise, Meristem, United Capital, etc.

⿤ Provide your ID & BVN for KYC. You may choose to wait until your brokerage account is created within about 48 hours with CSCS (account number with the broker) number and CHN (brokerage BVN). You can open many brokerage accounts with different brokers and CSCS (Central Securities Clearing System) numbers, but your CHN (Clearing House Number) should remain the same.

⿥ Fund your account and start earning ethical, halal returns

The Takeaway

(1) Halal investing in Nigeria is no longer a dream — it’s real, regulated, and accessible.

Whether you want the flexibility of ETFs, the safety of Sukuk, or the steady growth of mutual funds and stocks, you now have purely halal choices. The quoted returns could vary based on the market. A grand summary is presented in the table below/attached.

(2) Target a diversified portfolio consisting of stocks, Sukuk, mutual funds, and ETFs. 

(3) See the top gainers and losers for the month of October 2025 alone on NGX from INVESTDATA. The list includes at least 3 of the NGX-Lotus Islamic Index companies (Dangote Cement, MTN, Aradel) among the top gainers. You can imagine increasing your wealth by 27% in just one month. 

✨ Invest consciously. Grow peacefully. Earn halal.

AFIT, NDA & ABU-DLC: Exploring Nigeria’s Silent Academic Giants Beyond ASUU Strikes

Yesterday, after sharing my reflections on my son Muhammad’s matriculation into 100 Level, B.Eng. Aerospace Engineering at the Air Force Institute of Technology (AFIT), Kaduna, many readers reached out to know more about this unique and not-so-popular institution. Their curiosity prompted me to write this post, not just about AFIT, but also about two other equally outstanding institutions — the Nigerian Defence Academy (NDA) and Ahmadu Bello University Distance Learning Centre (ABU-DLC) — that are redefining higher education in Nigeria in quiet but remarkable ways.

1️⃣ Air Force Institute of Technology (AFIT), Kaduna

AFIT’s story is both inspiring and instructive. It began in 1977 as the NAF Technical Service School (TSS), was upgraded in 2004 to award OND (Ordinary National Diploma), and was renamed AFIT in 2008. For years, it awarded OND and HND qualifications until 2017, when it transitioned into a degree-awarding institution, now offering undergraduate, postgraduate diploma (PGD), and master’s programs in engineering, computing, and sciences.

Both civilian students and military officers are admitted, though the officers mostly pursue OND and HND programs.

Pros

✅ No ASUU strikes! Although it’s a public institution, AFIT is not affected by ASUU actions. Some graduates claim that AFIT covers nearly three semesters in a single year, allowing students to graduate faster than their peers elsewhere. Whether or not this is fully accurate, one thing is certain — steady academic progress and timely graduation are guaranteed.

I recall my undergraduate years at Ahmadu Bello University (ABU) between 1999 and 2004 — a period that witnessed a cumulative 16 months of ASUU strikes, delaying our graduation by over a year. Imagine the relief of knowing that your child’s education won’t be interrupted!

✅ Affordable tuition: AFIT’s fees are comparable to those of other public universities. For instance, I paid ₦116,000 for Muhammad’s registration and ₦20,000 for the acceptance fee.

Cons

❌ Highly competitive: This year, only candidates who scored 200 and above in JAMB were invited for the post-UTME. For Aerospace Engineering, the cutoff was around 240 (60%), derived from the combined average of UTME and post-UTME scores. It’s arguably AFIT’s most competitive course.

❌ Name confusion: Some hesitate because it’s called an institute, not a university. But remember, the world’s top-ranked university — Massachusetts Institute of Technology (MIT) — also doesn’t carry “university” in its name. The name does not define the quality.

AFIT currently has four faculties — Air Engineering, Ground Engineering, Computing, and Sciences.

Courses like Aerospace Engineering, which combines both Aeronautical and Astronautical Engineering, are offered — a program even the great ABU does not have yet.

When Muhammad told me he wanted to study Aeronautical Engineering, and we couldn’t find it anywhere close by, I advised him to choose Aerospace Engineering instead. It’s broader, more versatile, and aligns perfectly with his passion.

💡 A word to parents: please don’t force your children into fields they are not interested in. Instead, expose them to multiple disciplines — medicine, law, engineering, computing, sciences, business, etc. — and let them choose their own paths. Guide, don’t dictate. Many bright minds lose their passion because they were compelled to chase their parents’ dreams, especially medicine, not their own.

👉 For more details on AFIT, visit: https://afit.edu.ng/home/

2️⃣ The Nigerian Defence Academy (NDA), Kaduna

Many people think NDA is exclusively a military training ground — but that’s an outdated assumption. Today, NDA is a full-fledged university with five faculties, offering undergraduate and postgraduate (Master’s and PhD) programs to both military officers and civilians.

Its faculties include Engineering, Sciences, Military Science, Arts & Social Sciences, and Management Sciences.

Like AFIT, NDA does not experience ASUU strikes, making it a dependable institution for uninterrupted learning.

Interestingly, NDA offers some unique programs not available in other public universities — for instance, Psychology, which even ABU does not offer at the undergraduate level.

👉 For more details, visit: https://nda.edu.ng/

3️⃣ Ahmadu Bello University Distance Learning Centre (ABU-DLC)

This is another innovative model under the prestigious ABU. The Distance Learning Centre (DLC) allows students to study from home — through video lectures, WhatsApp sessions, and weekend online classes — while writing exams physically at centers across Nigeria, Saudi Arabia, the UK, Dubai, and more.

It offers both undergraduate and master’s degrees, including programs in Economics, Business Administration, Nursing Science, Computer Science, and the popular MBA.

A beautiful feature of the ABU-DLC program is that its certificates are identical to those issued to regular students — there’s no mention of “distance learning” on them.

Pros

✅ No ASUU strikes.

✅ Accelerated study pace: You cover three semesters per year, which means a 4-year program can be completed in less than 3 years.

Cons

❌ Cost structure: It may seem more expensive since students pay per course, but compared to private universities, it’s still very affordable — especially for working professionals who can study flexibly.

👉 For more details, visit: https://abudlc.edu.ng/

Final Thoughts

Nigeria’s higher education system still offers hidden gems for those who seek quality, stability, and flexibility. AFIT, NDA, and ABU-DLC stand out as models of what’s possible — institutions that combine public accountability with private-sector efficiency, all while remaining accessible to ordinary Nigerians.

For me, this journey feels like a full circle — from a young undergraduate who entered ABU with the lowest JAMB score in my class but graduated at the top, to now watching my son walk confidently into AFIT to begin his own engineering dream.

May Allah continue to guide our children, bless their efforts, and grant them success that will surpass ours.

Addendum

I just confirmed that NDA opens its undergraduate courses to cadets only.