Ethical finance based on the core principles of fairness and social justice.


Non-interest investing follows principles similar to ethical investing.

Similar to conventional banks, non-interest based banks are regulated by The Central Bank of Nigeria (CBN). For the protection of depositors, the Nigerian Deposit Insurance Corporation (NDIC) has the Non-Interest Deposit Insurance Scheme.

According to the draft framework put forward by the NDIC:

“The Maximum Deposit Insurance Coverage (MDIC) for all Non- Interest Banking Institutions shall be the same as the Deposit Money Banks, which is presently ₦500,000 per depositor per account and ₦200,000 per depositor per account for Microfinance banks ”

Non-interest banks operating under the Islamic principles require an additional layer of governance and compliance compared with conventional banks; to ensure that all activities of the bank are carried out in accordance with Islamic law. To avoid misrepresentation, a non-interest bank is required to have a board of Islamic scholars who oversee and audit the operational workings of the bank and provide an annual certification confirming compliance.

The CBN requires banks offering non-interest products to include the logo below on their marketing literature
Non-interest Finance Institution logo

Non-interest insurance also known as Islamic insurance or Takaful is regulated by the National Insurance Commission (NAICOM). Non-interest investments also known as ethical investments or Islamic investments are regulated by the Securities and Exchange Commission (SEC).

In the United Kingdom and other countries, regulators have proactively created an enabling framework for non- interest finance to ensure the sector is properly regulated. Global regulators continue to work to ensure there is a level playing field between non-interest banking and conventional banking.

The investment regulation, developed by the National Pension Commission (PenCom), known as the “Draft Amended Regulation on Investment of Pension Fund Assets” makes provision for a multi-fund structure for the pension fund investment. The Fund IV of the multifund is strictly a Non-Interest/Ethical Fund that is strictly in compliance with Islamic Shari'ah principles and shall be maintained for both “Active” and “Retiree” Retirement Savings Account (RSA) holders who may choose to participate in this fund.