Afrinvest Asset Management has introduced a N2.5 billion Halal Fund designed to provide ethical and Sharia-compliant investment options for Nigerians seeking alternatives to conventional interest-based financial instruments.
At a media briefing in Lagos, Group Managing Director Ike Chioke said the fund targets all classes of investors, particularly those guided by Islamic financial principles. The open-ended mutual fund, recently approved by the Securities and Exchange Commission (SEC), offers 25 million units at N100 per unit.
Chioke noted that between 70% and 100% of the fund will be invested in Sharia-compliant fixed income instruments such as Sukuk issued by federal, state, and corporate bodies. Up to 30% may be directed toward equities screened for Sharia compliance, while up to 25% may be placed in contracts including Ijara, Mudaraba, Wakala, and Musharaka.
In keeping with Islamic finance principles, the fund avoids sectors like alcohol, gambling, tobacco, pork, and weapons, and instead focuses on halal asset-backed instruments and ethical income generation.
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He added that investors can redeem their funds within five business days following a 90-day lock-in period, offering liquidity and flexibility.
Highlighting the limited reach of investment products in Nigeria, Chioke said only about 10 million Nigerians currently participate in the capital market, with just 2 to 3 million involved in mutual funds. He emphasized the importance of financial inclusion and the need to develop more accessible, values-driven investment tools.
Kabir Ibrahim, manager of Afrinvest's Kano office, said the demand for ethical investment is strong, particularly in northern Nigeria, where many investors prefer instruments aligned with their religious values.
Also speaking, Afrinvest Managing Director Chris Omoh described the Halal Fund as a flexible investment product. With a minimum investment of N10,000, and redemptions allowed after the initial 90-day period, the fund is designed to serve both entry-level and sophisticated investors. Early redemptions will attract a 1.5% fee on earned income.
Zenith Bank serves as custodian of the fund, with other professional parties including United Capital Trustees, Meristem Registrars, and an Advisory Council of Experts to ensure Sharia compliance.
According to Mustakeem Thanni, a member of the fund's advisory board, recent oversubscription of government-issued Sukuk highlights strong appetite for Sharia-compliant products. He noted that a recent sukuk issuance seeking N300 billion received offers of over N2 trillion, underscoring the market's untapped potential.
