Alpha10 Launches N500m Halal Fund For MSME Financing

By Johnson Emmanuel

Alpha10 Fund Management Limited launched a N500 million Alpha10 Halal Fund in Abuja, positioning it as a Shari’ah-compliant investment vehicle designed to improve financial inclusion, expand access to capital for Micro, Small and Medium Enterprises (MSMEs), and broaden ethical investment opportunities. Announcing the fund, Abigail Utomi, Managing Director and Chief Executive Officer of Alpha10 Fund Management Limited, stated that the structure allows MSMEs to access funding directly or indirectly while benefiting from advisory support aimed at improving investment readiness and regulatory compliance. The open-ended fund accepts investments from as little as N1,000, operates a 90-day lock-in period, and targets annual returns of 14.5 percent to 16 percent, subject to market conditions. United Bank for Africa serves as custodian of the fund.

Utomi stated: “With the way the fund is structured, it addresses that problem because MSMEs can access funding directly or indirectly through the fund. If you need to structure a product to bring your business to market, to put it in a state where it is bankable and investment grade, we could also support you through that business to achieve that.”

According to her: “We believe strongly that everybody should be able to access wealth management solutions that meet their needs regardless of their beliefs, faith, and preferences.”

DECISION HIGHLIGHT

The fund combines capital mobilisation, ethical investing and enterprise advisory services in an attempt to address one of Nigeria’s most persistent economic constraints: limited access to structured financing for MSMEs.

DECISION MEMO

The significance of the Alpha10 Halal Fund lies less in its size and more in the market segment it targets.

Nigeria’s MSMEs contribute substantially to economic output and employment, yet access to formal financing remains one of the sector’s most enduring challenges. Many small businesses struggle not only to secure funding but also to meet governance, documentation and compliance standards required by regulated financial institutions.

The fund appears designed to address both constraints simultaneously. Beyond providing capital, it incorporates advisory services intended to improve business bankability and investment readiness. This reflects an increasingly important reality within enterprise finance: capital shortages are often intertwined with capability and compliance gaps.

The non-interest structure is equally notable. Islamic finance continues to gain traction within Nigeria’s financial system, supported by growing sovereign Sukuk issuance, expanding non-interest banking activities and increasing demand for ethical investment products. By positioning the fund as accessible regardless of religious affiliation, Alpha10 is seeking to broaden its appeal beyond traditional Islamic finance participants.

The investment strategy also reflects wider market developments. With fixed-income yields remaining relatively attractive, Shari’ah-compliant instruments such as Sukuk are increasingly being viewed as viable vehicles for mobilising long-term domestic capital.

The broader implication is that Nigeria’s alternative finance ecosystem is gradually evolving from niche offerings towards mainstream capital formation channels capable of supporting entrepreneurship, financial inclusion and wealth creation.

DATA BOX

Fund Details

• Fund Name: Alpha10 Halal Fund
• Fund Size: N500 million
• Structure: Open-ended
• Minimum Investment: N1,000
• Lock-in Period: 90 days
• Target Annual Return: 14.5%–16%

Custodian

• United Bank for Africa

Investment Focus

• Sukuk instruments
• Shari’ah-compliant assets
• Ethical investment products

Excluded Sectors

• Gambling
• Betting
• Alcohol
• Tobacco

Alpha10 Metrics

• Current Assets Under Management: Approximately N3 billion
• Five-Year Assets Under Management Target: N50 billion

MSME Economic Contribution

• Approximately 50% of Nigeria’s GDP
• More than 80% of national employment

Islamic Finance Indicators

• Sovereign Sukuk subscriptions since 2017: N2.205 trillion

Future Products Under Consideration

• Informal sector fund
• Real Estate Investment Trust

WHO WINS / WHO LOSES

Winners

• MSMEs seeking alternative financing channels.
• Entrepreneurs requiring investment-readiness support.
• Retail investors seeking ethical investment products.
• Non-interest finance participants.
• Women and underserved business segments benefiting from broader financial inclusion initiatives.

Potential Losers

• Informal businesses unwilling to improve governance and compliance structures.
• Traditional financing providers facing increased competition from alternative investment vehicles.
• Sectors excluded under Shari’ah investment principles.

POLICY SIGNALS

• Financial inclusion remains a priority within capital market development.
• Alternative finance is becoming a recognised component of economic growth strategy.
• Islamic finance is gaining institutional and market acceptance.
• Policymakers continue to encourage diversified funding channels for MSMEs.
• Enterprise development is increasingly linked to structured capital market solutions.

INVESTOR SIGNAL

The launch reinforces growing momentum within Nigeria’s non-interest finance market. Rising sovereign Sukuk activity, expanding Islamic banking assets and increasing investor appetite for ethical products suggest a deepening market for Shari’ah-compliant investments. The fund also demonstrates growing efforts to channel domestic savings towards productive enterprise financing rather than purely passive investment opportunities.

RISK RADAR

• MSME default and business sustainability risks.
• Market volatility affecting targeted returns.
• Limited awareness of non-interest investment products.
• Regulatory and compliance challenges among beneficiary enterprises.
• Liquidity pressures during periods of economic stress.
• Concentration risks within Shari’ah-compliant asset classes.

The strategic significance of the Alpha10 Halal Fund is that it seeks to connect three traditionally separate objectives, financial inclusion, ethical investing and MSME development, into a single capital mobilisation framework. Its success will depend less on the initial N500 million size and more on its ability to convert underserved businesses into investment-ready enterprises capable of attracting sustainable capital.