The Alternative Bank, TK Tech Africa Collaborate on $500m Digital Sukuk

The Alternative Bank and TK Tech Africa are set to transform the landscape of financial technology and non-interest banking in Nigeria through their innovative $500 million Digital Sukuk initiative.

This partnership is pioneering the use of blockchain technology for the issuance, trading, and settlement of Sukuk bonds, championing ethical and Sharia-compliant investments in the country.

The Group Head of Structured Trade & Commodities Finance at The Alternative Bank, Gbenga Awe in a statement emphasised the bank’s foremost position as a bank-tech, leveraging its digital innovations and competencies in the financial services sector.

Awe underscored the bank’s efforts to create wealth by developing digital products for everyone interested in commodities and precious metals. According to him, the initiative will allow anyone to invest in the commodities market through tokenized alternative assets, providing unprecedented flexibility and accessibility.

Speaking on the transformative nature of this collaboration, Founder and CEO of TK Tech Africa, Oludamola Akindolire, said; “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.”

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.

Eguarekhide Longe, Managing Director and CEO of the NASD OTC Securities Exchange, expressed optimism about the initiative’s potential, stressing the importance of raising awareness for its success.