Fintech Firm Launches Ethical Finance Platform as Nigeria’s Non-Interest Finance Market Expands
- Open Space launches an Ethical Finance platform offering asset-backed, Shariah-compliant products for individuals and businesses
- AI-powered financing and Islamic finance structures aim to expand inclusion among farmers, entrepreneurs, SMEs and underserved Nigerians
- Planned Sukuk issuance could strengthen Nigeria’s non-interest capital market and unlock new ethical investment opportunities
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Nigerian fintech company Open Space has launched an Ethical Finance platform offering asset-backed and Shariah-compliant financial products as interest in non-interest finance continues to grow across the country.
The company said the platform is aimed at expanding access to financing while promoting transparency, fairness, responsible investment and financial inclusion for individuals and businesses.
The launch took place in Abuja on Tuesday, where Open Space Chief Executive Officer, Titus Adakole Ikeh, said the company was developing an alternative financing model that links funding to productive economic activities rather than relying solely on conventional cash lending.
Source: Original
Platform targets wider market
Ikeh said Open Space’s Ethical Finance offering was not designed exclusively for Muslims, arguing that its principles could appeal to Nigerians looking for transparent financial arrangements and alternative ways of financing businesses and building wealth.
He said fintech was also incorporating artificial intelligence into its financial services to improve access to financing, particularly for underserved individuals and businesses.
The platform offers several Islamic finance structures, including Murabaha for asset financing, Ijarah for leasing, Diminishing Musharakah for shared ownership, and Mudaraba for savings and investment based on profit-sharing.
According to the company, the products can serve farmers, transport operators, professionals, small businesses and other entrepreneurs seeking financing to acquire productive assets or expand their operations.
Global Islamic finance market grows
Open Space Shariah Adviser, Zubair Mughal, said the increasing global acceptance of Islamic and Ethical Finance could provide Nigeria with an opportunity to deepen financial inclusion and develop new investment channels.
Mughal made the remarks while presenting a paper titled “Islamic/Ethical Finance: A Promising Pathway for Nigeria’s Inclusive Financial Future.”
He said Islamic finance had expanded beyond its traditional faith-based customer base because of its focus on transparency, asset-backing, ethical investment and risk-sharing.
Citing the ICD–LSEG Islamic Finance Development Report 2025, Mughal said global Islamic finance assets reached approximately $5.98 trillion in 2024.
He argued that Nigeria's large population, entrepreneurial base and developing capital market could position the country to become a major Islamic and Ethical Finance hub in West Africa.
Technology seen as key to financial inclusion
Mughal said technology would play an important role in expanding non-interest finance by reducing transaction costs and making products more accessible beyond traditional banking channels.
He said digital platforms could help take Ethical Finance products to small and medium-sized businesses, households, traders and young entrepreneurs who may have limited access to conventional financing.
Open Space is also working towards securing the necessary regulatory licences for its non-interest financing activities, according to Mughal.
Sukuk plans emerge
The company is considering a Sukuk issuance as part of its longer-term strategy, Mughal disclosed.
Sukuk are investment instruments structured to comply with Islamic finance principles and can provide alternative funding and investment opportunities while supporting the development of the non-interest segment of Nigeria's capital market.
Mughal said the proposed move could widen investment opportunities for institutional and individual investors and contribute to the development of Nigeria's non-interest capital market.
Source: UGC
He stressed that appropriate regulation, effective Shariah governance, technology and investor education would be critical to the sustainable growth of Ethical Finance in Nigeria.
With the right regulatory and market framework, he said, the sector could support financial inclusion, SME development, ethical investment and broader economic growth.
Open Space said its Ethical Finance business is built around non-interest financing, asset-backed transactions and technology-driven financial solutions.
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Source: Legit.ng
