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Part of the guideHow to save in Nigeria when inflation is high
The short answer
In Nigeria you can save without interest through non-interest banks and the non-interest windows of conventional banks, using safekeeping (wadiah or qard) accounts that pay nothing, or profit-sharing (mudarabah) accounts whose return depends on actual profits. For longer-term money, Federal Government sukuk pay rental income from public projects, and the May 2025 issue paid 19.75% a year. Deposits at licensed non-interest banks fall under the NDIC's deposit insurance framework.
Many Nigerians avoid interest for religious reasons, and others simply prefer a structure tied to real assets or shared profit. Both groups have regulated options. This article explains them in plain terms and shows how to stop an interest-free balance from shrinking while inflation runs at 14.63% (September 2026). It sits under our guide to saving in Nigeria when inflation is high, which compares every option on one page.
The four structures you will meet
The CBN licenses full non-interest banks and allows conventional banks to run non-interest windows, under guidelines it first issued in 2011. Products on the savings side generally use one of these contracts:
- Wadiah (safekeeping)
- The bank keeps your money safe and returns it on demand. No return is promised. The bank may give a discretionary gift (hibah), but it cannot be a condition.
- Qard (interest-free loan)
- You lend your money to the bank, which must repay the principal in full. It pays no return; the bank carries the risk.
- Mudarabah (profit-sharing)
- You provide the money; the bank invests it in Shariah-compliant activity and profits are split at a ratio agreed in advance. Losses, if any, fall on the capital provider, so the return is not guaranteed.
- Sukuk (asset-backed certificates)
- You own a share in an asset, such as a road, and receive rental income from it. The Federal Government issues sukuk through the Debt Management Office.
Each structure should be approved by a Shariah board or adviser. Ask the provider who sits on that board, how often it reviews products, and whether its rulings are published.
What each option pays and how it is protected
| Option | Return | Access | Protection |
|---|---|---|---|
| Wadiah or qard current/savings account | None by design | Any time | NDIC non-interest framework, up to the insured limit |
| Mudarabah savings account | Variable profit share, paid monthly at some banks | Any time or on notice, by product | NDIC non-interest framework; profit not guaranteed |
| Mudarabah term investment | Variable, usually a higher sharing ratio | Fixed term | As above |
| FGN sukuk | Fixed rental; 19.75% a year on the 2025 seven-year issue | Held to maturity or sold on the exchange | Federal Government obligation; not NDIC |
| SEC-registered ethical or Shariah funds | Variable, depends on holdings | Usually a few working days | SEC regulation and a custodian; not NDIC |
The NDIC built a separate deposit insurance framework so that wadiah, qard, mudarabah and musharakah deposits at non-interest banks are covered alongside conventional deposits. Current limits are ₦5 million per depositor at a bank and ₦2 million at a microfinance bank.
How a mudarabah ratio works
Jaiz Bank's savings account is a public example. It runs on mudarabah, profit is shared 30:70 between customer and bank, and distributions are made monthly according to your balance. The ratio is fixed; the profit it is applied to is not. If the bank's investment pool had a strong month, your share rises; in a weak month it falls. Ask any provider for its recent distribution history so you can judge what the ratio has meant in practice.
Sukuk in practice
In May 2025 the DMO opened its seventh sovereign sukuk, ₦300 billion of Ijarah sukuk for road projects, for seven years at a rental rate of 19.75% a year, with a minimum of ₦10,000 in units of ₦1,000. Over its life the programme has raised about ₦1.09 trillion, and the first ₦100 billion sukuk, issued in 2017, was repaid in full in 2024. On ₦100,000 at 19.75%, rental income is ₦19,750 a year before any tax. Sukuk are offered occasionally, not monthly, so watch the DMO's announcements and buy through a stockbroker or bank acting as a receiving agent.
The inflation problem with zero-return savings
Money in a wadiah or qard account keeps its naira value but loses buying power. Take ₦500,000 held for a year with inflation at 14.63%: you still have ₦500,000, but it buys what about ₦436,186 bought at the start. The loss is the cost of certainty and of avoiding interest.
Three ways to limit the loss without taking interest:
- Keep only your emergency fund in the zero-return account: three to six months of essential costs.
- Put money with a horizon of months into mudarabah term investments or a Shariah-compliant fund, accepting that the return can vary.
- Put money with a horizon of years into sukuk or a diversified Shariah equity fund, and accept that equity funds can fall in value.
An illustration: a saver with ₦1,500,000 keeps ₦600,000 (four months of costs) in a wadiah account, ₦400,000 in a mudarabah term investment for a known expense next year, and ₦500,000 in sukuk at a fixed rental rate. Only the first part is fully exposed to inflation, and it is the part that has to be there on any given day. The other two earn a return without interest, at the cost of some uncertainty or a longer commitment.
Holding some savings in a foreign currency is another hedge, though it trades inflation risk for exchange-rate risk. Our article on saving in dollars weighs that up. If you also save with a rotating group, our comparison of ajo, esusu and savings apps covers the trade-offs; ajo is interest-free by nature.
Timing matters as much as structure. Sovereign sukuk are offered only occasionally, so money meant for one may wait months in a wadiah account. Mudarabah term investments often have minimum terms and may pay a reduced share, or none, if withdrawn early. Before you commit, write down when each part of your savings will be needed and choose structures whose access terms fit those dates.
Questions to ask any provider
- Which contract does this product use: wadiah, qard, mudarabah or another?
- Who is on your Shariah board, and is the product certified?
- For profit-sharing products: what is the ratio, and what have monthly distributions been over the past year?
- Is the provider a licensed non-interest bank, a non-interest window, or a fund? That determines whether NDIC or SEC rules protect you.
- What happens to any interest the provider earns by accident, for example on balances with other banks?
Profit shares and rental income are investment income, and tax treatment can differ from conventional interest. Ask your provider how withholding tax is applied, and see our article on withholding tax on interest for the general rules.
Where Pryme fits
Pryme's Interest-free Box (Nigeria-only, in naira) is simply a Box that earns nothing by design, for people who prefer not to earn interest. It is a separate pot inside the account, so you can keep it apart from other savings, and Eva can prepare transfers into it, with nothing moving until you approve. Its terms are shown in the app. If you want a profit-sharing structure or a certified product, the non-interest banks, sukuk and funds described above are where to look, and the questions in this guide apply to each of them.
For mudarabah investments or sukuk, use a provider that offers them, such as a licensed non-interest bank, non-interest window or SEC-registered fund; the full savings guide explains what to look for and how they compare with other options.
Questions people ask
What is a halal savings account in Nigeria?
It is an account that pays no interest, usually run on wadiah or qard (safekeeping, no return) or mudarabah (shared profit). Non-interest banks and the non-interest windows of conventional banks offer them, under CBN guidelines.
Are non-interest bank deposits insured by NDIC?
Yes. The NDIC created a framework that covers wadiah, qard, mudarabah and musharakah deposits at licensed non-interest institutions, up to the same limits as conventional deposits: ₦5 million at a bank and ₦2 million at a microfinance bank.
How much does FGN sukuk pay?
Each issue sets its own rate. The seven-year ₦300 billion issue opened in May 2025 paid a rental rate of 19.75% a year, with a ₦10,000 minimum. Future issues may pay more or less.
Is mudarabah profit guaranteed?
No. You agree a sharing ratio in advance, but the profit it applies to depends on how the bank's investments perform. Ask for past distribution figures.
How do I stop interest-free savings losing value?
Keep only your emergency fund in a zero-return account and put longer-term money into profit-sharing products, sukuk or Shariah-compliant funds that match your timeline.
Sources
- CBN: guidelines for non-interest banking institutions · accessed Oct 2026
- BusinessDay: NDIC deposit insurance framework for non-interest banks · accessed Oct 2026
- ICIR: NDIC raises deposit insurance coverage (May 2024) · accessed Oct 2026
- NairaCompare: Jaiz Bank savings account (mudarabah) · accessed Oct 2026
- ThisDay: DMO opens N300bn Series VII sukuk (May 2025) · accessed Oct 2026
- NBS CPI, September 2026: inflation slows to 14.63% (Nairametrics) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.