February 09, (THEWILL) — The Bank of Industry (BoI) has secured approval from the Central Bank of Nigeria (CBN) to operate a non-interest banking window, marking a significant step in expanding alternative financing options for businesses.
The approval allows BoI to provide Shariah-compliant, non-interest financial products alongside its conventional lending operations, targeting enterprises and projects that prefer ethical or interest-free financing structures.
BoI said the new window is aimed at deepening financial inclusion and supporting underserved segments of the economy, particularly small and medium-sized enterprises (SMEs) and businesses operating in sectors where non-interest finance is in demand.
Non-interest banking operates on principles that prohibit interest charges and speculative transactions, relying instead on profit-sharing, asset-backed financing and risk-sharing arrangements. The model has gained traction in Nigeria in recent years, supported by regulatory reforms and growing investor interest.
Analysts say BoI’s entry into non-interest finance could help mobilise new pools of domestic and foreign capital, while offering businesses more flexible funding options amid tight credit conditions and elevated borrowing costs.
The development aligns with broader efforts by the CBN to promote non-interest finance as part of Nigeria’s financial system, positioning it as a tool to support real-sector growth and economic diversification.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
