Firm launches N500 million Halal Fund to expand MSME financing, financial inclusion

Alpha10 Fund Management Limited has launched a N500 million Halal Fund aimed at expanding financial inclusion and improving access to funding for micro, small and medium-sized enterprises (MSMEs) across Nigeria.

The firm unveiled the Alpha10 Halal Fund in Abuja on Wednesday, describing it as a Shari’ah-compliant investment product designed to provide ethical investment opportunities while helping businesses become investment-ready and compliant with regulatory requirements.

According to the company, the fund forms part of its broader strategy to bridge the financing gap facing small businesses and provide wealth management solutions that cater to investors regardless of their faith, income level, or investment preferences.

What the firm is saying

Alpha10 said the newly launched fund is structured to provide both direct and indirect funding opportunities for MSMEs while supporting entrepreneurs with advisory services that improve their ability to attract capital.

“With the way the fund is structured, it addresses that problem because MSMEs can access funding directly or indirectly through the fund,” said Managing Director and Chief Executive Officer, Abigail Utomi.
“If you need to structure a product to bring your business to market, to put it in a state where it is bankable and investment grade, we could also support you through that business to achieve that.”
“We believe strongly that everybody should be able to access wealth management solutions that meet their needs regardless of their beliefs, faith, and preferences.”
“UBA is the custodian of our fund, so you can rest assured that your funds are kept in safe hands.”

Utomi disclosed that the open-ended fund allows investments from as little as N1,000, offers a 90-day lock-in period, and targets annual returns of between 14.5% and 16%, subject to market performance and underlying asset returns.

More Insights

The launch comes amid growing concerns over limited access to financing for Nigeria’s MSMEs, which continue to face challenges in securing regulated funding despite their significant contribution to economic activity.

Alpha10 plans to invest the fund in Sukuk instruments and other Shari’ah-compliant assets while adopting active portfolio management strategies.
The company is also considering additional investment vehicles, including an informal sector fund and a Real Estate Investment Trust (REIT).
The fund excludes investments in sectors prohibited under Islamic finance principles, including gambling, betting, alcohol, and tobacco.
Alpha10 currently manages approximately N3 billion in assets and aims to increase assets under management to N50 billion within the next five years.

Chairman of the Board, Chibuzo Ekwekwuo, said one of the biggest obstacles facing small businesses is the inability to meet compliance requirements needed to access regulated funding. He noted that the firm’s advisory division would support businesses in improving their structures and governance to become investment-ready.

The board chairman also stressed that halal investment products are not exclusively for Muslims but are designed for investors seeking ethical and asset-backed investment opportunities.

What you should know

In June 2025, Fitch Ratings projected that Nigeria’s Islamic finance industry is likely to expand from the second half of 2025 through 2026 on the back of increasing sovereign sukuk issuances and Islamic banking asset.

This came after the Debt Management Office (DMO) announced that the Federal Government has successfully recorded a total of N2.205 trillion subscriptions through the Sovereign Sukuk since its debut in 2017.

Access to finance remains one of the biggest challenges facing small businesses in Nigeria despite their significant contribution to economic growth and employment.