CFG Africa, a leading multi-asset investment firm, officially launched its N1 billion Ethical Fund in 2025. Shortly after, the firm hosted a strategic Non-Interest Investment Forum in Abuja. Signaling a growing shift in the market toward non-interest financial instruments. This move comes as investors seek alternatives to hedge against the fiscal adjustments. Projected for 2026 and the ongoing “higher-for-longer” interest rate environment.
Amid Nigeria’s evolving macroeconomic landscape, where inflationary pressures challenge the equity market. CFG Africa is positioning itself as a leader in ethical investments. Following its high-profile launch event in Lagos, as reported. The firm extended its national dialogue to Abuja, further solidifying its commitment to ethical finance.
The Lagos and Abuja forums served as platforms to introduce the CFG Africa Ethical Fund, a SEC-registered N1 billion unit trust. This fund is designed to generate returns from Shariah-compliant, asset-backed instruments, offering investors a secure and ethical investment option.
Lagos Forum: Advocating for Pro-Growth Monetary Policies
At the 2025 CFG Africa Client Engagement Forum in Lagos. Discussions centered on the urgent need for a “pro-growth” monetary policy shift. Keynote speaker Prof. Bongo Adi from Lagos Business School highlighted the potential for Nigeria’s manufacturing sector to rebound if interest rates are reduced.
Prof. Adi emphasized that lowering the Monetary Policy Rate (MPR) is critical to stabilizing the equity market and ensuring that the benefits of recent structural reforms reach the broader economy. For institutional investors, the forum’s key takeaway was clear: closely monitor the U.S. yield curve—the gap between short- and long-term treasury yields—as a key indicator of global recession risks in the coming months.
Abuja Forum: Ethical Investments Outperforming Expectations
The Non-Interest Investment Forum in Abuja shifted the focus from macroeconomic risks to specific opportunities within ethical asset classes. A panel led by Dr. Basheer Oshodi, CEO of TrustArthur and President of the Non-Interest Financial Institutions Association of Nigeria, debunked the myth that ethical investing compromises performance.
Dr. Oshodi presented data showing that ethical, asset-backed instruments are increasingly outperforming traditional assets, especially in today’s uncertain global economy. He cited the 735% oversubscription of Nigeria’s recent 10-year Ijarah Sukuk as evidence of strong demand in the market.
“One Sukuk a year is not enough,” Dr. Oshodi stated. “We should aim for quarterly issuances. This would enable the creation of smaller secondary instruments and foster a more active risk-asset market.”
The panel also discussed structural challenges in the non-interest finance ecosystem. Dr. Oshodi noted that the combined assets of Nigeria’s non-interest banking sector are still smaller than those of a few digitally-enabled microfinance banks. He described this as a significant opportunity for technology-driven growth in the sector.
Inside the CFG Ethical Fund: A Strategic Approach
The N1 billion CFG Africa Ethical Fund is a direct response to a market valued at N1.6 trillion. According to the SEC. Akindele Ogundepo, Head of Asset Management at CFG Africa. Explained that the fund was designed to address the limited investment options available to both retail and institutional investors.
The fund operates as an open-ended unit trust with an offer price of N1,000 per unit. And a minimum subscription of just 10 units (N10,000), making it accessible to retail investors. Its portfolio is strategically diversified, with 70% to 85% allocated to high-quality Sovereign and Sub-Sovereign Sukuk. The remaining portion is invested in Shariah-compliant equities and other fixed-income instruments.
To ensure strong oversight, the fund is supported by AVA Trustees, Rand Merchant Bank as Custodian, and One17 Capital as Sharia Adviser.
Strategic Vision: “Safety Before Profit”
Babajide Lawani, Group Managing Director of CFG Africa. Emphasized that the firm’s entry into the non-interest investment space is a deliberate effort to expand Nigeria’s investable capital base.
“We don’t follow the traditional paths of other markets,” Lawani said. “The non-interest space offers a unique opportunity for financial inclusion. Allowing people to invest in line with their values without sacrificing competitive returns.”
As Nigeria targets a 5% GDP growth rate for 2026, CFG Africa’s focus on asset-backed stability reflects a broader trend. In an era of unpredictable global economics, ethical investments are emerging as a preferred choice for smart capital.
