Nigeria Shariah fund assets jump 74% on strong H1 returns
Net asset values of Nigerian Shariah-compliant mutual funds surged 74% to N138.26 billion in the first half of 2026, signalling growing mainstream demand for ethical, non-interest investment products amid a strong domestic equities rally.
Nigerian Shariah-compliant mutual funds saw their collective net asset value surge 74% to N138.26 billion in the first half of 2026. The sector returned an average of 17.54% over the six months, according to data from the Securities and Exchange Commission. This growth was primarily driven by robust equity market performance and improved fixed-income yields.
Equity-focused funds dominated the performance tables, underscoring the impact of a strong Nigerian stock market. The Stanbic IBTC Imaan Fund led the entire sector with a 54.65% year-to-date return, growing its net asset value to N31.9 billion across 10,140 unitholders. The fund allocates at least 70% of its portfolio to compliant equities, with the remainder in instruments like Sukuk. The only other Shariah equity fund registered with the SEC, the Lotus Halal Investment Fund, returned 35.85% and amassed over 17,000 unitholders on an NAV of N17 billion.
Fixed-income funds delivered more modest but stable yields. The Norrenberger Islamic Fund topped this category with an 18.47% return, accumulating N3.97 billion in assets and more than 990 subscribers. It was followed by the Marble Halal Commodities Fund at 16.71%, a notable vehicle as Nigeria’s first SEC-approved Shariah-compliant mutual fund dedicated to securitised commodities like agriculture and precious metals. Rounding out the top three fixed-income performers were the Cordros Halal Fixed Income Fund at 15.5% and the Emerging Africa Halal Fund at 13.73%, both managing around N354 million in assets.
Balanced funds, which blend Shariah-compliant stocks with instruments like Sukuk and Mudarabah deposits, posted robust gains. The ARM Halal Balanced Fund returned 38.82%, closing the period with N18.5 billion in assets and over 7,500 unitholders. The Lotus Waqf Fund, Nigeria’s first SEC-approved endowment fund tailored for charitable causes in education and healthcare, yielded 26.47%. The One17 Halal Fund brought up the rear in this category with a 24.32% return.
The rapid asset gathering indicates that Shariah-compliant investing is maturing beyond a niche demographic in Africa's largest economy. While these funds strictly adhere to Islamic principles by avoiding interest and excluding sectors like alcohol and gambling, their structure appeals to a broader market seeking transparent, socially responsible vehicles. For asset managers, the 74% surge in net asset values over six months highlights a compelling avenue for capital raising in an increasingly competitive landscape.
