Open Space launches ethical finance platform in Nigeria, plans Sukuk issuance

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Nigerian fintech company Open Space has launched an Ethical Finance platform in Abuja, offering asset-backed and Shariah-compliant financial products to individuals and businesses. The company says the platform aims to expand access to financing while promoting transparency, fairness and financial inclusion.

Platform targets productive financing

The launch took place in Abuja on Tuesday. Open Space Chief Executive Officer Titus Adakole Ikeh said the company is developing an alternative financing model that links funding to productive economic activities rather than relying solely on conventional cash lending.

Ikeh said the offering is not designed exclusively for Muslims. He argued that its principles can appeal to Nigerians looking for transparent financial arrangements and alternative ways of financing businesses and building wealth.

The platform offers several Islamic finance structures, including Murabaha for asset financing, Ijarah for leasing, Diminishing Musharakah for shared ownership, and Mudaraba for savings and investment based on profit-sharing. According to the company, these products can serve farmers, transport operators, professionals, small businesses and other entrepreneurs seeking financing to acquire productive assets or expand operations.

Global growth and Sukuk plans

Open Space Shariah Adviser Zubair Mughal said increasing global acceptance of Islamic and Ethical Finance could provide Nigeria with an opportunity to deepen financial inclusion and develop new investment channels. He cited the ICD-LSEG Islamic Finance Development Report 2025, which put global Islamic finance assets at approximately $5.98 trillion in 2024.

Mughal said Nigeria's large population, entrepreneurial base and developing capital market could position the country to become a major Islamic and Ethical Finance hub in West Africa. He stressed that technology would reduce transaction costs and make products more accessible beyond traditional banking channels.

Open Space is working towards securing the necessary regulatory licences for its non-interest financing activities. The company is also considering a Sukuk issuance as part of its longer-term strategy. Sukuk are investment instruments structured to comply with Islamic finance principles and can provide alternative funding and investment opportunities while supporting the development of Nigeria's non-interest capital market.

Significance for Nigerian businesses

Mughal said the proposed Sukuk could widen investment opportunities for institutional and individual investors. He added that appropriate regulation, effective Shariah governance, technology and investor education would be critical to sustainable growth. With the right framework, the sector could support financial inclusion, SME development, ethical investment and broader economic growth in Nigeria.

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