Shariah-compliant investments have continued to gain momentum in Nigeria, with more investors recognising the value of ethical investment opportunities. Data from the Securities and Exchange Commission (SEC) showed significant growth in Shariah-compliant investments in the first six months of 2026.
Notably, the Net Asset Value (NAV) of Shariah-compliant funds rose by 74% to N138.26 billion within six months, largely driven by increased awareness and competitive returns. According to the SEC, Shariah-compliant funds are offered as fixed-income, equity, and balanced funds. About Shariah-Compliant Funds
Shariah-compliant funds, also known as halal funds, are pools of money invested according to Islamic finance principles. They avoid interest-based transactions (riba) and exclude industries considered unethical, such as alcohol, gambling, and pork-related businesses.
Analysis by Nairametrics showed that Shariah-compliant funds returned an average of 17.54% in the first six months of the year, driven mainly by their equity holdings as well as improved fixed-income returns. Below are the best-performing Shariah-compliant mutual funds within each category in the first half of 2026, based on their different fund types. Fixed-Income Funds
5. FSDH Halal Fund (12.45%)
The FSDH Halal Fund is an open-ended mutual fund established in October 2023 and managed by FSDH Asset Management Limited. It invests in Shariah-compliant instruments such as sovereign and sub-sovereign Sukuk, corporate Sukuk, leasing contracts, and trading contracts.
The fund posted a YTD return of 12.45%, with an NAV of N1 billion and 336 unitholders. 4. Emerging Africa Halal Fund (13.73%)
The Emerging Africa Halal Fund is a Shariah-compliant mutual fund managed by Emerging Africa Asset Management Limited (EAAML). The fund typically invests in sovereign and sub-sovereign Sukuk, corporate Sukuk, and trading contracts.
The fund returned 13.73% in the review period, with an NAV of N354.8 million, and 89 subscribers. 3.
Cordros Halal Fixed Income Fund (15.5%)
Cordros Halal Fixed Income Fund recorded a YTD yield of 15.5%, ranking third among fixed-income Shariah-compliant mutual funds. It is managed by Cordros Asset Management Limited and had an NAV of N354.3 million and 89 unitholders. 2. Marble Halal Commodities Fund (16.71%)
The Marble Halal Commodities Fund is Nigeria’s first SEC-approved Shariah-compliant mutual fund dedicated to the commodities market. Managed by Marble Capital Limited, it invests in securitised commodities, such as agriculture and precious metals, as well as Sukuk and commodity-linked equities.
The fund returned 16.71%, with an NAV of N594.9 million and 145 subscribers. 1. Norrenberger Islamic Fund (18.47%)
Norrenberger Islamic Fund led the list of best-performing fixed-income Shariah-compliant funds in the review period, with an 18.47% YTD return. The fund is managed by Norrenberger Asset Management Limited (NAML) and had an NAV of N3.97 billion and more than 990 subscribers.
It invests in diverse, interest-free money market instruments and is listed on the Nigerian Exchange Limited. Equity Funds
There are only two Shariah-compliant equity funds listed with the SEC, and both delivered impressive returns, supported by the strong performance of the Nigerian stock market in H1 2026. 2. Lotus Halal Investment Fund (35.85%)
The Lotus Halal Investment Fund is a Shariah-compliant, open-ended mutual fund managed by Lotus Capital Limited.
It invests in ethical assets such as stocks, real estate, and Sukuk to grow wealth without earning interest. The fund recorded a YTD return of 35.85%, with an NAV of N17 billion and more than 17,000 unitholders. 1.
Stanbic IBTC Imaan Fund (54.65%)
The Stanbic IBTC Imaan Fund is an open-ended mutual fund designed to deliver long-term capital appreciation by investing predominantly in Shari’ah-compliant equities, which constitute at least 70% of the portfolio. The remaining portion is allocated to other Shariah-compliant instruments, such as Sukuk, in line with approved guidelines. The fund returned 54.65%, with its NAV rising to N31.9 billion and unitholders at 10,140.
Balanced Funds
3. One17 Halal Fund (24.32%)
One17 Halal Fund, managed by One17 Capital Limited, is a balanced mutual fund that invests in Shariah-compliant stocks and other non-interest fixed-income instruments.
The fund returned 24.32% over the six-month period, with an NAV of N181.5 million and 330 unitholders. 2. Lotus Waqf Fund (26.47%)
The Lotus Waqf (Endowment) Fund is Nigeria’s first SEC-approved endowment fund and is managed by Lotus Capital Limited. It is a collective investment scheme designed for investors who intend to support charitable causes in education, primary healthcare, economic empowerment, and family and social welfare. The fund recorded a YTD return of 26.47%, with an NAV of N395.6 million and 183 unitholders.
1. ARM Halal Balanced Fund (38.82%)
The ARM Halal Balanced Fund, formerly the ARM Ethical Fund, is a Shariah-compliant mutual fund invested in a mix of Shariah-compliant stocks and investment-grade instruments such as Sukuk and Mudarabah deposits. The fund led the category with a 38.82% return, an NAV of N18.5 billion, and more than 7,500 unitholders.
Bottom Line
The strong performance of Shariah-compliant mutual funds in H1 2026 reflects growing investor interest in ethical and non-interest investment products in Nigeria. While these funds are rooted in Islamic finance principles, they are not limited to Muslim investors; they also appeal to anyone seeking transparent, socially responsible, and interest-free investment options.
