AltBank Bets on Non-interest Finance To Drive Nigeria’s Next Growth Phase

The Alternative Bank (AltBank) has outlined a growth and impact agenda for 2026, positioning non-interest banking (NIB) as a key driver of financial inclusion, ethical finance, and sector-focused development in Nigeria.

Speaking during an interview on Islamic Finance Viewpoint, Korede Demola-Adeniyi, Executive Director, South, said the NIB sector remains significantly under-penetrated, accounting for just 1.7 per cent of Nigeria’s total banking assets as of 2024, despite growing demand for ethical and value-based financial services.

She noted that although the industry recorded modest growth in 2025, stronger advocacy and innovation are required to unlock its full potential. “Non-interest banking is not niche banking. It is ethical banking designed for inclusion. We are not selling to Muslims alone. We are offering a value proposition that works for everyone,” Demola-Adeniyi said.

As the industry looks to begin the year with increased capital and greater regulatory clarity, she expressed confidence that non-interest banks will play a more prominent role in Nigeria’s economic transformation.

According to her, AltBank’s growth strategy will focus on sectors with strong developmental impact, including healthcare, education, agriculture, renewable energy and transportation. She added that the Bank is also exploring structured participation in the creative economy through partnerships, while remaining compliant with non-interest banking principles.

“These are sectors that shape lives and livelihoods. Our responsibility is to design financing structures that solve real problems, not just disburse funds,” she said.

Addressing concerns about perceived over-collateralisation in non-interest banking, Demola-Adeniyi explained that the model is partnership-driven rather than interest-based, requiring transparency and shared risk between banks and customers. She emphasised the need for sustained public education to deepen understanding of NIB structures and benefits.

“The NIB model demands honesty and collaboration. When customers understand that the Bank is a partner, not just a lender, trust deepens and outcomes improve,” she said.

AltBank currently operates through more than 130 branches and service locations nationwide, largely driven by partnerships. The Bank has also unveiled plans to scale this footprint to as many as 500 locations, alongside intensified financial literacy programmes and agent-empowerment initiatives.