In a significant move to reshape Nigeria's financial landscape, The Alternative Bank (AltBank) has announced an aggressive expansion strategy aimed at establishing up to 500 branches and service locations across the country by 2026. This ambitious plan, revealed in January 2026, seeks to dramatically improve access to ethical, non-interest banking principles for millions of Nigerians.
Massive Expansion to Bridge the Gap
Currently operating a network of over 130 locations, AltBank's goal to reach 500 represents a monumental scaling of its physical presence. The bank's Executive Director for the South, Mrs. Korede Demola-Adeniyi, emphasized that this expansion is a direct response to the significant under-penetration of the non-interest banking (NIB) sector. Despite growing demand, NIB accounted for a mere 1.7% of Nigeria's total banking assets in 2024.
Demola-Adeniyi clarified that the bank's mission is inclusive, stating its services are designed for everyone, not just a niche Muslim market. "Non-interest banking is not niche banking. It is ethical banking designed for inclusion," she asserted during an interview with Islamic Finance Viewpoint.
Strategic Focus on Key Development Sectors
The 2026 growth blueprint is not just about physical branches; it outlines a focused investment strategy. AltBank has committed to prioritizing financing in sectors with high developmental impact, which include:
- Healthcare
- Education
- Agriculture
- Renewable Energy
- Transportation
Furthermore, the bank is exploring structured participation in Nigeria's burgeoning creative economy through strategic partnerships, all while maintaining strict adherence to non-interest banking principles.
Building Trust Through Transparency and Education
A core component of the expansion involves addressing public misconceptions about non-interest banking. Demola-Adeniyi tackled concerns over perceived overcollateralisation, explaining that the model is built on transparency and shared risk between the bank and its customers. She stressed that the relationship is a partnership, not a traditional lender-borrower dynamic.
"Non-interest banking demands honesty and collaboration. When customers understand that the bank is a partner, not just a lender, trust deepens and outcomes improve," she noted.
To foster this understanding, AltBank plans to intensify its financial literacy programs and agent empowerment initiatives. These efforts are designed to deepen public knowledge of NIB structures and promote wider access to ethical financial services.
The bank expressed optimism for the sector's future, anticipating increased capital inflow and clearer regulatory frameworks in 2026. With this expansion, AltBank is positioning itself to play a far more prominent role in Nigeria's economic transformation, championing a model of finance rooted in ethical principles and shared prosperity.
