- The Alternative Bank (AltBank) plans to scale non-interest banking (NIB) in 2026, positioning it as a driver of financial inclusion, ethical finance, and sector-focused development, with emphasis on healthcare, education, agriculture, renewable energy, and transportation.
- Korede Demola-Adeniyi highlighted that NIB accounts for only 1.7% of Nigeria’s banking assets, stressing the need for advocacy, innovation, and public education to deepen adoption and dispel misconceptions about overcollateralisation.
- AltBank aims to expand its footprint from 130 to 500 service locations, strengthen partnerships, and roll out financial literacy and agent empowerment initiatives, reinforcing its commitment to inclusive and sustainable banking.
The Alternative Bank (AltBank) has outlined an ambitious growth and impact agenda for 2026, positioning non-interest banking (NIB) as a critical driver of financial inclusion, ethical finance, and sector-focused development in Nigeria.
Speaking during a televised interview with Web TV’s Ramah Mohammed on Islamic Finance Viewpoint, Korede Demola-Adeniyi, Executive Director, South, said the NIB sector remains significantly underpenetrated, accounting for just 1.7 per cent of Nigeria’s total banking assets as at 2024, despite rising demand for ethical and value-based financial services.
She noted that while modest growth was recorded in 2025, the industry must intensify advocacy and innovation 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.
As the industry looks to start the year on a high with increased capital and regulatory clarity, Demola-Adeniyi expressed confidence that non-interest banks will play a more prominent role in Nigeria’s economic transformation.
According to her, AltBank’s growth strategy will concentrate on 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 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 around perceived overcollateralisation in non-interest banking, Demola-Adeniyi explained that the model is partnership-driven rather than interest-based, requiring transparency and shared risk between banks and customers. She emphasised the need for sustained public education to improve understanding of NIB structures and benefits.
“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.
AltBank currently operates out of over 130 branches and service locations nationwide, largely driven by partnerships. The Bank has also revealed plans to scale this footprint to as many as 500 locations, alongside intensified financial literacy programmes and agent empowerment initiatives.
