The Alternative Bank (AltBank) says plans are underway to scale up its footprint across the country from 130 locations to 500, adding that the move was to intensify financial literacy for Nigerians.
The financial institution also explained that the non-interest banking sector remains significantly underpenetrated by accounting for just 1.7 per cent of Nigeria's total banking assets as at 2024.
Mrs Korede Demola-Adeniyi, Executive Director, South, stated this in Abuja during an interview on Islamic Finance Viewpoint, saying the under penetration was despite growing demand for ethical and value-based financial services.
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She noted that while the industry recorded modest growth in 2025, deeper advocacy, public education and product 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.
According to her, with increased capital and clearer regulation expected to shape the sector in the new year, non-interest banks would assume a more prominent role in Nigeria's economic transformation.
The finance expert further explained that AltBank's growth strategy for 2026 will prioritise 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 fully 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 over perceived overcollateralisation in non-interest banking, Demola-Adeniyi explained that the NIB model is partnership-driven rather than interest-based, requiring transparency and shared risk between banks and customers.
She stressed the importance of sustained public education to improve understanding of how non-interest banking structures work and the benefits they offer.
"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.
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