Afrinvest Asset Management has launched a new N2.5 billion Halal Fund aimed at providing investment opportunities for Nigerians seeking ethical, interest-free alternatives aligned with Islamic financial principles.
Speaking during a media briefing in Lagos on Thursday, Group Managing Director of Afrinvest, Ike Chioke, described the launch as strategic. He explained that the open-ended fund was developed to meet growing demand for faith-based investment products. Recently approved by the Securities and Exchange Commission (SEC), the fund offers 25 million units at N100 per unit and represents the company’s fifth mutual fund in the Nigerian market.
“This fund is targeting all class of investors, especially investors with faith-based Sharia principles for income generation. It is benchmarked against Nigeria’s sovereign Sukuk, and investors can redeem their funds within five business days after the initial 90-day lock-in period,“ Chioke said.
He noted that the fund would allocate 70 to 100 per cent of its assets to Sharia-compliant fixed income instruments, particularly Sukuk issued by the federal and state governments, as well as corporate bodies. Between 0 to 30 per cent may be invested in Sharia-screened equities, while up to 25 per cent could go into contracts such as Ijara, Mudaraba, Wakala, and Musharaka.
Emphasising its ethical orientation, the fund excludes investments in sectors such as alcohol, tobacco, gambling, weapons, pork, and adult content.
Instead, it prioritises profit-sharing models and halal asset-backed instruments. “This fund has the following advantages: Sharia compliance, ethical income generation, diversification across compliant sectors, and professional oversight,” he added.
The firm acknowledged the low penetration of investment services in Nigeria, citing data that only about 10 million Nigerians were actively invested in the capital market. “When you look at the Nigerian Exchange, you have about 10 million unique accounts out of over 220 million citizens. And for mutual funds, the number drops to just 2 or 3 million. We need more people like Afrinvest to develop these kinds of instruments and support financial inclusion.”
While recognising the presence of other asset managers in the same space, Chioke said Afrinvest’s three-decade experience and national footprint distinguished the firm. “Our track record in managing mutual funds positions us as a leader. This product isn’t just for Muslims; it’s for anyone seeking ethical investments.” He added that the fund’s benchmark;the 10-year FGN Sukuk currently yielding 19 per cent underscored its robust potential.
Also speaking, Manager of Afrinvest’s Kano office, Kabir Ibrahim, highlighted the increasing demand from clients in Northern Nigeria for investment options that comply with Islamic beliefs.
“This fund is Shari’ah-compliant, meaning you can still put your money in an investment that also protects your faith. You know that even though you are investing a minimum of N10,000, that money you are investing, you are sure where that money is going,” Kabir said.
He reiterated that the Halal Fund would deliberately avoid investments in interest-driven and morally sensitive industries, maintaining full alignment with Sharia principles through its primary allocation to Sukuk instruments and a vetted list of compliant equities.
On his part, Managing Director of Afrinvest, Chris Omoh, described the fund as a flexible and transparent investment vehicle. “Investors can redeem units any time after the lock-in period, with payouts processed within five business days. This is a game-changer for liquidity,” he said.
Omoh explained that the fund required a minimum entry of 100 units (N10,000), with subsequent investments in multiples of 10 units. Early redemptions within the 90-day period attract a 1.5 per cent fee on earned income. He also disclosed that Afrinvest planned to expand its product lineup to include infrastructure funds and exchange-traded funds (ETFs), leveraging its mobile app to reach more investors.
Representing the fund’s custodian, Zenith Bank, Folusho Ogundele expressed optimism about its market potential. “The market is actually very vast because we have a lot of Muslims, a lot of ethical investors. So, the market is not yet deeply penetrated,” Ogundele said.
A member of the fund’s Advisory Council of Experts, Mustakeem Thanni, cited growing demand for Sharia-compliant investments and referenced the oversubscription of recent government Sukuk as evidence. “The current sukuk that was issued a few months ago, it was oversubscribed. They were looking for about 300 billion. They got about 2 trillion. So, it shows that we still need more hands to come into the market,” Thanni noted.
Professional parties to the fund include Afrinvest Asset Management Limited as fund manager, Zenith Bank PLC as custodian, United Capital Trustees as trustee, Meristem Registrars as registrar, and the Advisory Committee of Experts responsible for compliance oversight and annual certification
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