Lotus Capital is targeting a bigger role in financing the country’s productive economy, with plans to expand its investments in manufacturing, agriculture, infrastructure, real estate, and renewable energy following two decades of building the country’s non-interest financial services market.
Hajara Adeola, managing director and chief executive officer of Lotus Capital, made this known during the anniversary celebration, held on Friday in Lagos, themed “20 Years of Creating Wealth the Halal Way.”
“We want to move closer to the real economy. We want to contribute to the productive economy, finding innovative ways through technology as well to finance the agriculture sector, the real sector, the real estate sector, and the renewable energy sector,” Adeola said.
The ambition comes as Nigerian businesses continue to face limited access to affordable long-term financing, particularly in capital-intensive industries where investments require substantial funding and longer gestation periods.
Adeola said Lotus Capital intended to work more closely with entrepreneurs and industrial groups to address their financing requirements, from smaller businesses to large corporations.
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“We would deepen our partnerships with industrial players, small and medium-sized enterprises (SMEs) and international financial institutions to develop financing solutions for productive assets, marking a strategic shift towards supporting economic activity beyond traditional wealth management,” she said.
Fola Adeola, chairman of the board of Lotus Capital, said the company’s 20-year journey had demonstrated the viability of non-interest finance in Nigeria, despite initial resistance and limited public understanding of the concept.
Reflecting on the company’s beginnings, he recalled that its establishment was a bold move at a time when conventional banking and capital market instruments dominated Nigeria’s financial system.
“When my wife said she wanted to set up an Islamic financial institution in this city, I said to myself, you know what, we have to do this. And I told her that, you know, as one person, I’ll back you, and we’ll go on the journey, but I don’t know Islamic finance at all,” he said.
He said the company’s first investment product, the Halal Fund, exceeded its initial fundraising target, demonstrating that demand for Sharia-compliant investments existed beyond initial expectations.
The board chairman said Lotus Capital’s contribution went beyond introducing investment products to helping Nigerians understand that non-interest finance could operate alongside conventional financial services while providing investors with alternatives aligned with their values.
He argued that financing instruments should be assessed on their economic value rather than religious perceptions.
The board chair also called for a more ambitious approach to non-interest finance, particularly in addressing Nigeria’s shortage of long-term capital for industrial development.
His position aligns with that of Aliko Dangote, president and chief executive of Dangote Group, who challenged Lotus Capital to move beyond incremental expansion and become a major facilitator of industrial financing.
Dangote, during his keynote speech, said his family was among Lotus Capital’s earliest major corporate clients. He added that the country’s financing structure remained heavily dependent on short-term, expensive funding, creating challenges for businesses undertaking long-term investments.
“Industrial investment requires substantial financing, often with a long gestation period, before meaningful returns can be realised. Unfortunately, much of our domestic financing remains relatively short-term and expensive,” he said.
He argued that non-interest financing instruments, including asset-backed financing, leasing arrangements, equity participation, profit-sharing structures and Sukuk, could broaden the pool of capital available to businesses.
“These instruments do not eliminate commercial risk or financial costs. However, when appropriately structured, they can provide greater flexibility, broaden the investor base and create additional channels for mobilising patient capital,” Dangote said.
He urged Lotus Capital to extend its involvement beyond government-backed infrastructure projects to private-sector investments, particularly manufacturing plants, industrial parks, ports, agricultural processing facilities, and renewable energy projects.
Dangote said the next phase should involve making non-interest finance a more significant contributor to Nigeria’s industrial development rather than limiting its relevance to a niche segment of the financial market.
“Twenty years in business is an important achievement, but twenty years of pioneering a new financial concept, building public confidence and sustaining an institution through changing economic conditions is an even greater accomplishment,” he said.
Lotus Capital’s expansion strategy builds on its two-decade contribution to Nigeria’s non-interest financial services market. The company had established four Securities and Exchange Commission-registered public mutual funds and collaborated with the Nigerian Exchange to develop the NGX Lotus Islamic Index.
It also advised the Federal Government on its first three sovereign Sukuk issuances, which, according to management, supported the construction of more than 4,000 kilometres of roads and nine bridges.
Its latest initiatives include the Waqf Endowment Fund, a mutual fund structure that channels investment income to charitable causes in perpetuity. Lotus Capital also founded Lotus Bank, which the company identified as Nigeria’s third non-interest bank.
The wider industry now comprises at least five asset management companies, five Islamic banks, five Takaful insurance companies, and more than 20 mutual funds, according to the managing director.
Gregory Ogbegbor, head of structured finance at Lotus Capital, said the company’s early years were characterised by limited awareness of Islamic finance, requiring sustained investor education to demonstrate its commercial viability.
“The journey has been tough, but we fought through. Islamic finance then, when we started, nobody knew about Islamic finance. So we had to do a lot of work in terms of educating people,” he said.
Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.
