Alternative Bank in Collaboration TK Tech Africa Sets up $500 million Digital Sukuk initiative

The Alternative Bank, in collaboration with TK Tech Africa, has come to implement measures that are positioned to transform the landscape of financial technology and non-interest banking in Nigeria through their innovative $500 million Digital Sukuk initiative.

The partnership is said to pioneer the use of blockchain technology for issuing, trading, and settling Sukuk bonds, championing ethical and Sharia-compliant investments in the country.

The Alternative Bank's Group Head of Structured Trade & Commodities Finance, Gbenga Awe, stated that the company's leading role as a bank tech is to utilise its digital innovations and proficiencies in the financial services industry.

Awe highlighted how the bank is working to build digital products that will benefit everyone interested in precious metals and commodities. The initiative will give unprecedented flexibility and accessibility to anyone investing in the commodities market through tokenized alternative assets.

He affirmed that the bank's involvement goes beyond digital. "We are deeply engaged in the agricultural sector, with significant assets like cocoa, soybeans, sesame, precious metals, and warehousing facilities. These showcase the bank's preparedness to support the Sukuk initiative with tangible, real assets," he elaborated.

Oludamola Akindolire, founder and CEO of TK Tech Africa, spoke about the transformative nature of this collaboration. "We are setting a new benchmark for financial innovation in Africa, offering an ethical investment avenue through the synergy of Islamic finance and blockchain technology," Akindolire stated. He highlighted the initiative's target demographic as urban middle- to high-income Nigerians aged 25 to 60, highlighting its role in fostering inclusive economic growth.

Akindolire further emphasised the initiative's role in promoting inclusive economic growth and its target demographic of urban middle- to high-income Nigerians between the ages of 25 and 60.

Several prominent figures in the industry have praised the initiative. Akinsola Akeredolu-Ale, managing director and CEO of Lagos Commodities and Futures Exchange (LCFE), praised The Alternative Bank for contributing substantial assets and stressed the importance of encouraging young people to invest in gold.

Eguarekhide Longe, managing director and CEO of the NASD OTC Securities Exchange, expressed hope for the initiative's future while emphasising the need for increased public awareness to ensure its success. 

The $500 million Digital Sukuk initiative by The Alternative Bank and TK Tech Africa marks a significant stride towards integrating Islamic finance with blockchain technology in Nigeria. Focused on ethical investments and leveraging the bank's digital and commodity finance expertise, this partnership promises to enrich Nigeria's economic fabric and herald a new age of financial innovation.