Key Highlights
CFG Africa has launched its ₦1 billion SEC-registered Ethical Fund to meet the growing demand for non-interest, asset-backed instruments.
The Ethical Fund is an open-ended unit trust with a minimum entry of ₦10,000, allocating 70–85% of assets to sovereign and sub-sovereign Sukuk, with the remainder in Shariah-compliant equities.
Nigeria's recent 10-year Ijarah Sukuk saw a 735% oversubscription, highlighting strong market demand for ethical assets.
The fund is supported by AVA Trustees, Rand Merchant Bank, and One17 Capital, ensuring a robust fiduciary structure.
CFG Africa aims to expand Nigeria’s investable capital base by offering investment options aligned with ethical orientations, targeting a 5% GDP growth rate for 2026.
CFG Africa, a multi-asset investment firm, has officially launched its N1 Billion Ethical Fund and followed it up with a strategic Non-Interest Investment Forum in Abuja. This move signals a broader market transition toward non-interest instruments as investors hedge against 2026's projected fiscal adjustments and the lingering “higher-for-longer” interest rate environment.
Amidst a shifting macroeconomic landscape, CFG Africa is positioning itself as a champion of Ethical Investments. Following the unveiling in Lagos, CFG Africa extended its national dialogue to Abuja with client engagement forums serving as the launchpad for the CFG Africa Ethical Fund, a SEC-registered N1,000,000,000 unit trust designed to capture yield from Shariah-compliant and asset-backed instruments.
At the CFG Africa Client Engagement Forum 2025 in Lagos, Prof. Bongo Adi of Lagos Business School stated that the manufacturing sector would rebound significantly if interest rates were adjusted downward and that a downward review of the Monetary Policy Rate (MPR) is essential to introduce stability into the equity market. The forum's consensus was to keep a “hawkish eye” on the US yield curve as a barometer for global recessionary risk.
At the Non-Interest Investment Forum, Dr. Basheer Oshodi, CEO of TrustArthur and President of the Non-Interest Financial Institutions Association of Nigeria, challenged the myth that ethical investing requires a “performance sacrifice.” Dr. Oshodi pointed to the 735% oversubscription of Nigeria’s recent 10-year Ijarah Sukuk as evidence of a “starved” market, stating that one Sukuk a year is not enough and advocated for quarterly issuances to create smaller secondary instruments and develop a more active risk-asset market. He also highlighted that the combined assets of the entire non-interest banking sector remain smaller than those of a handful of digitally-enabled microfinance banks.
The launch of the N1 Billion Fund is a calculated response to a market now valued at N1.6 trillion, according to the SEC. Akindele Ogundepo (Head, Asset Management, CFG Africa), explained that the fund addresses the “shortage of investment options” for both retail and institutional players.
The fund is structured as an open-ended unit trust with an offer price of N1,000 per unit, requiring a minimum subscription of only 10 units (N10,000). The fund allocates between 70% and 85% of its portfolio to high-quality Sovereign and Sub-Sovereign Sukuk, with the remainder channeled into Shariah-compliant equities and other fixed-income instruments. The fund is supported by AVA Trustees, Rand Merchant Bank as Custodian, and One17 Capital as Sharia Adviser.
Babajide Lawani, Group Managing Director of CFG Africa, emphasized that the firm’s entry into the non-interest space is a deliberate move to expand Nigeria's investable capital base, stating that the non-interest space can drive massive inclusion, allowing people to invest according to their orientation without sacrificing competitive returns.
As Nigeria targets a 5% GDP growth rate for 2026, CFG Africa's move underscores that asset-backed stability is becoming the preferred refuge for smart capital. Detailed Prospectus and Subscription forms for the CFG Ethical Fund are available for download at www.cfgafrica.com.
