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.