HalalWallet (halalwallet.ng) compares Shariah-compliant business financing in Nigeria, from The Alternative Bank's published-rate AltBiz and SWAY AG facilities and Jaiz's MSME agency-Murabaha to TAJBank's trader finance, Lotus's SME and corporate lines, and the four CBN-licensed Islamic microfinance banks. Founded by Robert Mallon and Kyle Natter, and backed by Niya, a Silicon Valley venture studio, HalalWallet provides independent comparisons of halal business financing so Nigerian entrepreneurs can grow their businesses without interest.
Islamic Business Financing in Nigeria
From published-rate SME facilities to trader Murabaha, agricultural Salam, and corporate Istisna. Compare structures, ceilings, and Shariah oversight.
Reviewed quarterly and updated when provider data, product availability, or pricing changes.
Top Picks
Top Islamic Business Financing Providers
Every provider reviewed against published terms: profit rates, fees, ceilings, and who actually certifies the Shariah structure.
Ranked by Halal Money Index grade: disclosed Shariah governance, transparency, pricing disclosure and track record. Not sponsored.
The Alternative Bank
A-Ijarah (SME asset lease, bank retains ownership)
Best for: Established SMEs with strong cash flow that need equipment or vehicles fast and value a genuine, published Ijarah over cheaper but riba-based hire purchase.
Shariah Oversight
Jaiz Bank
A-Trade Murabaha, Istisna, Musharaka, Ijara and Kafala
Best for: Corporates, contractors and importers needing trade, project, equity or guarantee facilities structured on Islamic contracts rather than interest lending.
Shariah Oversight
Compare Islamic Business Financing
Published products side by side: structure, ceiling, tenure, and Shariah oversight.
Availability
Structure
Sharia Oversight
Amount Range
Opens provider site - no obligation
Availability
Structure
Sharia Oversight
Amount Range
Opens provider site - no obligation
Availability
Structure
Sharia Oversight
Amount Range
Opens provider site - no obligation
Availability
Structure
Sharia Oversight
Amount Range
Opens provider site - no obligation
Availability
Structure
Sharia Oversight
Amount Range
Opens provider site - no obligation
Availability
Structure
Sharia Oversight
Amount Range
Opens provider site - no obligation
Availability
Structure
Sharia Oversight
Amount Range
Opens provider site - no obligation
Availability
Structure
Sharia Oversight
Amount Range
Opens provider site - no obligation
Availability
Structure
Sharia Oversight
Amount Range
Opens provider site - no obligation
Our Analysis
Business financing is the category where pricing transparency varies most in Nigeria, and being honest about that matters more than padding a list. The Alternative Bank stands alone in publishing full terms: AltBiz working capital to N5m at 15.5% flat per annum (20% Hamish deposit, 24 months), AltLease equipment to N20m at 30% per annum reducing, SWAY AG agricultural finance to N20m at 9%, and the Social Mobilization Facility to N250,000 at 9.5% through its agent network.
The rest of the market prices per relationship. Jaiz runs agency-Murabaha working capital and channels intervention funds (BOI N3bn, SMEDAN N500m, DBN N5.4bn, BRAVE Women) through Shariah-compliant contracts; TAJBank's Murabaha for Traders covers N500,000 to N5m over 90-day cycles with relaxed collateral; and Lotus publishes the most complete contract lineup of any Nigerian bank (Murabaha, Ijarah, Istisna, Salam) with zero processing fees but negotiated markups. No comparison table can honestly rank unpublished margins, so we show structures, ceilings, and tenors instead.
At the microfinance tier, four CBN-licensed Islamic microfinance banks serve traders and artisans: Al-Barakah (Lagos, operating Islamic products since around 2010), Tijarah (Bauchi, Nigeria's first fully licensed non-interest MFB, 2014), and I-Care and Halal Credit in Kano. None publishes rates or a Shariah board, so ask for the total price and the certification in writing before signing anything.
Home financing is just one of 7 categories. Average score: 63/100.
See yoursHow Islamic Business Financing Works in Nigeria
Trade and partnership structures replace interest, from published-rate SME facilities to negotiated corporate contracts
Published-Rate SME Facilities
The Alternative Bank is the outlier that publishes its numbers: AltBiz working capital runs to N5m at a 15.5% flat annual markup with a 20% commitment deposit, and AltLease equipment finance to N20m at 30% per annum reducing. Everyone else quotes at application.
Murabaha (Cost-Plus Sale)
The bank buys the stock or raw materials you need and resells them at a disclosed total price paid later. Jaiz and Lotus run it with a customer-agency step: you source the goods as the bank's agent, matched to 90-day trade cycles.
Istisna, Salam, and Musharakah
Beyond trade finance: TAJBank and Lotus offer Istisna for commissioned construction, Lotus adds Salam advance-purchase for commodities, and both banks offer Musharakah partnership finance where profit is shared by ratio.
Agricultural Financing
Jaiz finances the agricultural value chain under Murabaha, Ijara, and Salam with NIRSAL credit-risk guarantees where applicable. The Alternative Bank's SWAY AG takes smallholders and agro-businesses to N20m at a published 9% annual markup, aimed at women and youth.
Shariah Oversight
Every non-interest bank operates under an Advisory Committee of Experts within the CBN framework; Lotus and The Alternative Bank name their scholars. At the microfinance tier, disclosure thins out sharply.
Intervention Funds Flow Through
Jaiz channels government and development finance through Shariah-compliant contracts: a N3bn BOI Intervention Fund, N500m SMEDAN Matching Fund, N5.4bn DBN Intervention Fund, and the BRAVE Women programme.
Choosing Islamic Business Financing
What Do You Actually Need to Finance?
You're a market trader needing small, short-cycle stock finance
TAJBank's Murabaha for Traders (N500,000 to N5m, 90 days, relaxed collateral), Lotus's Traders Coins (market association membership required), or The Alternative Bank's Social Mobilization Facility (to N250,000 at a published 9.5% per annum).
You want published pricing before you walk in
The Alternative Bank: AltBiz working capital to N5m at 15.5% flat per annum with a 20% Hamish deposit, or AltLease equipment to N20m at 30% per annum. Jaiz's EnerJaiz solar finance also publishes full tiered pricing.
You're a farmer or agro-business
SWAY AG at The Alternative Bank (to N20m at a published 9%, aimed at women and youth), Jaiz agricultural finance under Murabaha, Ijara, and Salam with NIRSAL guarantees, or Lotus Agric Finance for registered agribusinesses.
You run an established SME or corporate needing structured finance
Jaiz, TAJBank, and Lotus corporate desks: Murabaha for inventory and imports, Ijarah for equipment, Istisna for construction projects, Salam for commodities, and Musharakah partnership finance, all priced case by case. Ask which intervention funds are open in your sector.
Business Financing by State
Coverage differs sharply by state: see what operates where you are
Frequently Asked Questions
Guides & Resources
The Alternative Bank Review →
The only bank publishing full SME rates: AltBiz, AltLease, and SWAY AG.
Jaiz Bank Review →
MSME agency-Murabaha, agricultural Salam, and the intervention funds.
TAJBank Review →
Trader Murabaha, trade finance, guarantees, and Istisna project finance.
Lotus Bank Review →
The most complete contract lineup: Murabaha, Ijarah, Istisna, and Salam.
Islamic Business Accounts →
Current and savings accounts to anchor the banking relationship.
Business Takaful Cover →
Marine, goods-in-transit, and indemnity cover without conventional insurance.
Explore Other Categories
Zakat & Islamic Finance Resources
Understand Zakat on business assets and Islamic finance principles.
Quick Answer
The best Islamic business financing in Nigeria depends on your size and how much pricing certainty you want. For published rates, The Alternative Bank leads: AltBiz working capital to ₦5m at 15.5% flat per annum, AltLease equipment to ₦20m at 30% per annum, and SWAY AG agricultural finance to ₦20m at 9%. For small traders, TAJBank's Murabaha for Traders covers ₦500,000 to ₦5m over 90 days with relaxed collateral. Established SMEs and corporates negotiate Murabaha, Ijarah, Istisna, and Salam facilities at Jaiz, TAJBank, and Lotus, priced case by case, with Jaiz channelling BOI, DBN, and SMEDAN intervention funds through Shariah-compliant contracts.
Key Takeaways
- The Alternative Bank is the only Nigerian bank publishing full SME rates: 9% to 30% per annum depending on facility, with 20 to 30% Hamish deposits.
- TAJBank's trader Murabaha finances ₦500,000 to ₦5m over 90-day cycles, built for quick-turnover traders without heavy collateral.
- Jaiz distributes ₦8.9bn of government intervention funds (BOI, SMEDAN, DBN) plus BRAVE Women through Shariah-compliant contracts.
- Most bank margins are negotiated per risk profile, not published; get the total Murabaha price in writing before signing.
- Four CBN-licensed Islamic microfinance banks (Lagos, Bauchi, Kano x2) serve the micro tier, but none publishes rates or a Shariah board.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
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For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
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Average score: 63/100
Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.