What Are the Best Halal Investment Options for Muslims in Nigeria?

For a Muslim investor, the key principle is to avoid Riba (interest/usury) and businesses whose primary activities are prohibited under Islamic law.
General Shariah-Compliant Investment Rules
A company is usually considered halal if it:
✅ Does not derive substantial income from:
Conventional banking
Interest-based lending
Insurance (conventional insurance)
Gambling
Alcohol
Tobacco
Adult entertainment
Pork-related businesses
Weapons manufacturing (according to some scholars)
✅ Has manageable debt levels and limited interest income based on Islamic screening standards.
Halal Investments in Nigeria
1. Federal Government Sukuk
FGN Sukuk
This is generally regarded as one of the most widely accepted halal investments in Nigeria.
Structured as an asset-backed investment
Investors earn rental/profit income rather than interest
Used to finance roads and infrastructure
Available through stockbrokers and issuing houses
2. Shariah-Compliant NGX Stocks
The Nigerian market has an Islamic index:
NGX Lotus Islamic Index
Stocks commonly screened for inclusion may include companies from sectors such as:
Consumer goods
Agriculture
Industrial goods
Telecommunications
Examples that have appeared in Islamic screening exercises include:
MTN Nigeria
BUA Foods
BUA Cement
Dangote Cement
Presco Plc
Okomu Oil Palm
Because index constituents can change, it is wise to verify current Shariah screening before investing.
3. Islamic Mutual Funds
Examples include:
Lotus Capital Islamic Equity Fund
ARM Investment Managers Islamic Fund (when available)
Other SEC-approved Islamic collective investment schemes
These funds employ Shariah advisers who continuously screen investments.
International Halal Investments
U.S. Stocks
Many global Muslim investors use Shariah-screened stocks such as:
Apple
Microsoft
NVIDIA
Tesla
Alphabet
These companies are often included in Islamic equity screening universes, subject to periodic review.
International Halal ETFs
Popular examples include:
SP Funds S&P 500 Sharia Industry Exclusions ETF
Wahed FTSE USA Shariah ETF
iShares MSCI World Islamic ETF
These ETFs automatically screen companies according to Shariah criteria.
Investments Most Scholars Consider Non-Halal
❌ Conventional bank fixed deposits
❌ Treasury Bills
❌ Conventional bonds
❌ Conventional money market funds that earn interest
❌ Shares of conventional banks such as:
Guaranty Trust Holding Company
Zenith Bank
United Bank for Africa
Access Holdings
because their primary business involves interest-based lending.
If You Use InvestNaija, Bamboo, Trove, Risevest, or Other Apps
A practical halal portfolio could look like:
40% FGN Sukuk
40% Shariah-screened Nigerian stocks
20% International Shariah ETFs (SPUS, HLAL, etc.)
This provides:
Income from Sukuk
Growth from equities
International diversification
The most practical benchmark for halal Nigerian equities is the NGX Lotus Islamic Index, which tracks stocks screened for Shariah compliance.
Based on the latest publicly available NGX Lotus Islamic Index constituent information and Islamic equity fund disclosures, the following stocks are generally regarded as Shariah-compliant as of 2026
Sector
Company
Agriculture
Okomu Oil Palm
Agriculture
Presco Plc
Oil & Gas
Aradel Holdings
Aviation Services
Nigerian Aviation Handling Company
Consumer Goods
BUA Foods
Consumer Goods
Nascon Allied Industries
Financial Services (Islamic Banking)
Jaiz Bank
Telecommunications
MTN Nigeria
Industrial Goods
BUA Cement
Industrial Goods
Dangote Cement
Industrial Goods
Lafarge Africa
Industrial Goods
LOTUS Capital Limited
Stocks Many Muslim Investors Commonly Hold
Among Nigerian Muslim investors, these are often considered core halal holdings because their businesses are relatively straightforward and asset-based:
BUA Foods
BUA Cement
Dangote Cement
Presco Plc
Okomu Oil Palm
MTN Nigeria
Aradel Holdings
Jaiz Bank
These companies operate mainly in agriculture, telecoms, manufacturing, infrastructure, energy, or Islamic finance rather than interest-based banking
Stocks Usually Avoided by Strict Shariah Investors
Many Islamic screening methodologies exclude:
Conventional banks:
Access Holdings
Zenith Bank
United Bank for Africa
Guaranty Trust Holding Company
First HoldCo
Conventional insurance companies
Companies with substantial alcohol-related revenue
Highly leveraged firms that fail Shariah debt-ratio screens
Important Clarification
A stock being in a Shariah index does not mean every scholar will automatically agree it is halal forever.
Islamic stock screening is reviewed periodically based on:
Debt levels
Interest income
Business activities
Financial ratios
Because of that, a company can enter or leave the Islamic index during rebalancing reviews.
For someone investing through InvestNaija, Bamboo, Trove, or a stockbroker in Nigeria, a conservative halal portfolio could focus on:
FGN Sukuk
Jaiz Bank
BUA Foods
BUA Cement
Dangote Cement
Presco Plc
Okomu Oil Palm
MTN Nigeria
This would align more closely with mainstream Islamic investing principles while still giving exposure to growth, dividends, and the Nigerian economy.