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


Non-interest finance works on a profit sharing basis, where profits derived from permissible transactions are shared amongst the depositors and the bank’s shareholders

The following are the broad underlying operating principles applied by Nigerian financial institutions offering non-interest financial products:

Social Responsibility: Avoiding activities / products that are deemed to be unethical and harmful to society, for example tobacco, alcohol, pork, gambling, pornography, etc. Risk sharing: All parties seeking a profit should share in the risk. Profit can be earned on assets where ownership risk is taken. Profit cannot be earned without taking risk. Prohibition of interest: Unjust enrichment and interest are perceived as acts of exploitation that can lead to the widening of the gap between the rich and the poor. Economic purpose/activity: Transactions should be related to real economic activity, not speculation. Every Naira put with a non-interest bank is used in the real economy, for example financing the construction of roads and buildings or investing in small businesses or financing farmers to grow crops or buying machines and renting these out. Transparency and fairness: all counter parties involved must have complete clarity on the terms of the product. Uncertainty creates conflict and problems and therefore should be avoided.