Nigeria’s Islamic finance industry will see strong growth in 2023-2024, driven by government sukuk issuances and policy initiatives, according to Fitch Ratings. The Central Bank of Nigeria has set a lower regulatory liquidity ratio for Islamic banks, and grants them a discount in calculating risk-weighted assets, allowing them to capture market share with less capital constraint on growth. However, Fitch notes that the industry is likely to remain nascent in the medium term despite government impetus.