Isiaka Lawal is the managing director of Lotus Bank, a non-interest financial institution in Nigeria focused on providing ethical and participatory banking solutions.
Since taking the helm, Lawal has overseen the expansion of Lotus Bank’s product offerings, including Sukuk and other participatory instruments, while championing financial inclusion and ethical finance across the country.
Do you believe non-interest banking can help reduce Nigeria’s reliance on debt?
Nigeria cannot sustainably finance its fiscal deficit through interest-bearing borrowing alone, particularly when debt service already absorbs a large share of government revenue.
Non-interest finance offers a credible complement because its instruments are tied to real assets rather than pure debt obligations.
Nigeria’s sovereign Sukuk programme already demonstrates this potential. The issuances have been consistently oversubscribed and have financed critical road infrastructure across the country.
Expanding Sukuk and other participatory structures can diversify government funding sources while mobilising domestic savings for long-term development. Over time, this reduces reliance on expensive borrowing and helps deepen Nigeria’s capital markets.
“Non-interest finance offers a credible complement because its instruments are tied to real assets rather than pure debt obligations.”
How does tax policy affect demand for non-interest financial products during weak consumer spending?
Tax policy inevitably affects household purchasing power. When disposable income tightens, investors often become more selective about where they place their savings.
Ethical finance tends to remain resilient in such periods because it is built around transparency, asset backing, and risk sharing. Instruments such as Sukuk or profit-sharing investments are often perceived as more stable and aligned with real economic activity.
Globally, we have seen this resilience in markets like Malaysia and the Gulf, where Islamic financial instruments continue attracting capital even during periods of fiscal tightening.
Nigeria is beginning to see similar interest as more customers look for transparent and value-aligned financial products.
Since taking the helm, Lawal has overseen the expansion of Lotus Bank’s product offerings, including Sukuk and other participatory instruments, while championing financial inclusion and ethical finance across the country.
Do you believe non-interest banking can help reduce Nigeria’s reliance on debt?
Nigeria cannot sustainably finance its fiscal deficit through interest-bearing borrowing alone, particularly when debt service already absorbs a large share of government revenue.
Non-interest finance offers a credible complement because its instruments are tied to real assets rather than pure debt obligations.
Nigeria’s sovereign Sukuk programme already demonstrates this potential. The issuances have been consistently oversubscribed and have financed critical road infrastructure across the country.
Expanding Sukuk and other participatory structures can diversify government funding sources while mobilising domestic savings for long-term development. Over time, this reduces reliance on expensive borrowing and helps deepen Nigeria’s capital markets.
“Non-interest finance offers a credible complement because its instruments are tied to real assets rather than pure debt obligations.”
How does tax policy affect demand for non-interest financial products during weak consumer spending?
Tax policy inevitably affects household purchasing power. When disposable income tightens, investors often become more selective about where they place their savings.
Ethical finance tends to remain resilient in such periods because it is built around transparency, asset backing, and risk sharing. Instruments such as Sukuk or profit-sharing investments are often perceived as more stable and aligned with real economic activity.
Globally, we have seen this resilience in markets like Malaysia and the Gulf, where Islamic financial instruments continue attracting capital even during periods of fiscal tightening.
Nigeria is beginning to see similar interest as more customers look for transparent and value-aligned financial products.