Nigeria's non-interest digital banking app, Ethica, has collaborated with Meristem Securities Limited to enable Muslim investors to participate in the Dangote Petroleum Refinery Initial Public Offering (IPO) in accordance with Islamic commercial jurisprudence. This partnership addresses concerns within the Nigerian Muslim community regarding the Sharia compliance of the landmark offering. Ethica has integrated a dedicated digital subscription channel into its mobile application, providing regulatory clarity and seamless execution for retail and ethical investors.
The Dangote Refinery IPO, which opened on September 14 and will close on October 13, 2026, offers shares priced at ₦525 each, with a minimum subscription threshold of 10 shares valued at ₦5,250. Ethica, powered by Ethica Microfinance Bank, aims to provide faith-conscious investors with a Sharia-compliant channel to invest in the IPO. The partnership reflects Ethica's commitment to bridging modern digital finance and non-interest banking, while promoting financial inclusion and ethical wealth creation.
Managing Director of Ethica Microfinance Bank, Tajudeen Sekoni, emphasized that the collaboration aligns with the institution's core mandate to provide equitable access to viable, long-term wealth-building vehicles. Sekoni stated that the partnership brings the historic opportunity directly to Ethica's customers and everyday Nigerians who want to participate with absolute confidence through an authentic, Sharia-compliant channel.
The Dangote Refinery IPO is Africa's largest public equity issuance to date, targeting an aggregate capital raise of approximately ₦2.15 trillion. Ethica's Head of Marketing, Communications, and Partnerships, Sodiq Oyeleke, clarified that the IPO meets established non-interest finance standards, backed by statutory advisory endorsements. Oyeleke noted that the partnership provides clear assurance for Muslims looking to subscribe, having been passed by Ethica's Advisory Committee of Experts and certified by FRACE.
FRACE is a shariah advisory body to the Central Bank of Nigeria regulating Islamic finance in the country. The certification by FRACE and the endorsement by Ethica's Advisory Committee of Experts confirm that the Dangote Refinery IPO meets the required Shari'ah standards. This development is expected to boost confidence among Muslim investors and provide them with a secure channel to participate in the IPO.
The partnership between Ethica and Meristem Securities Limited is a significant step towards promoting financial inclusion and ethical wealth creation in Nigeria. By providing a Sharia-compliant channel for the Dangote Refinery IPO, Ethica is catering to the needs of faith-conscious investors and reinforcing its commitment to non-interest banking. The collaboration is also expected to contribute to the growth of Nigeria's capital market.
The successful execution of the Dangote Refinery IPO is crucial for the development of Nigeria's energy sector. The refinery is expected to play a significant role in addressing the country's fuel scarcity challenges and reducing reliance on imported petroleum products. With the Shari'ah compliance concerns addressed, Muslim investors can now participate in the IPO with confidence, contributing to the growth of the Nigerian economy.
Key points
- The Dangote Refinery IPO is Africa's largest public equity issuance to date, targeting ₦2.15 trillion.
- Ethica has partnered with Meristem Securities to provide a Sharia-compliant channel for Muslim investors.
- The IPO shares are priced at ₦525 each, with a minimum subscription threshold of 10 shares valued at ₦5,250.
