Chairman of the Securities and Exchange Commission (SEC), Alhaji Aliyu Katuka, says non-interest banking is gaining wider acceptance in Nigeria, driven by increasing awareness and economic benefits.

Katuka said this in an interview with the News Agency of Nigeria (NAN) on the sidelines of the Islamic Development Bank (IsDB) Group Day in Lagos.

He noted that growing investor confidence in the capital market was strengthening market integrity and supporting Nigeria’s drive toward a one trillion dollar economy.

According to him, Islamic banking, also known as non-interest or Sharia-compliant finance, is gradually being embraced by Nigerians across religious divides.

“Initially, many non-Muslims had limited knowledge about non-interest banking, which slowed adoption, but ongoing sensitisation is improving understanding and acceptance,” he said.

Katuka said users of Islamic banking products were satisfied with the benefits, especially in areas of job creation, infrastructure development, education and healthcare financing.

He explained that although the segment remained relatively small compared to conventional banking, it was growing steadily and showing strong potential.

“Non-interest banking is still evolving, so direct comparison with conventional banking may not reflect its true potential, but the growth trajectory is encouraging,” he said.

The chairman said the model aligned with Nigeria’s financial inclusion strategy by offering alternative financing options to underserved populations.

He stressed the need for sustained public awareness campaigns to deepen understanding and drive broader adoption.

“The focus should be on the benefits to society, not religious differences. It is about economic development and shared prosperity for all Nigerians,” he said.

Katuka expressed optimism that increased participation in non-interest finance would further support economic growth and development. (NAN) (Daily Trust)