The NGX Lotus Islamic Index (NGXLII) is the only index on the Nigerian Exchange whose constituents are formally screened by a certified Shariah Advisory Board, reviewed against AAOIFI international standards, and rebalanced every six months to ensure continuous compliance. In 2024, the index delivered +50.56% for the full year. In Q1 2025, it grew +8.56% — the best performance of any index on the NGX that quarter, more than three times the +2.66% gain posted by the broader All-Share Index in the same period.
This post covers every official Shariah-compliant stock on the NGX as of 2026, explains exactly what makes each one halal, and shows you how to invest in them.
What Makes an NGX Stock Halal?
A stock is considered halal when the company passes two independent screens — a qualitative business activity screen and a quantitative financial ratio screen. Both must be cleared.
Screen 1 — Business Activity
The company must not derive significant revenue from activities that are prohibited in Islam. These include conventional banking and interest (riba), alcohol production or distribution, tobacco, gambling, pornography, weapons manufacturing, and pork-related products. If the core business falls into any of these categories, the stock is automatically excluded — regardless of how strong its financials are. This is why every conventional Nigerian bank fails the screen.
Screen 2 — Financial Ratios (AAOIFI Standard No. 21)
Even companies with permissible businesses must pass three financial ratio thresholds:
- Debt ratio: Total interest-bearing debt must not exceed 30% of the company's market capitalisation. Heavy leverage through conventional debt creates a riba exposure that disqualifies otherwise permissible companies.
- Interest income: Income from interest — including returns on cash deposits — must not exceed 5% of total revenues. Most listed companies hold some cash that earns interest; the 5% threshold acknowledges this while capping the exposure.
- Cash and interest-bearing securities: Total cash and conventional fixed-income holdings must not exceed 30% of market capitalisation. This prevents companies from effectively running a shadow interest-bearing business inside a halal shell.
Companies that pass all three ratio tests but have minor violations approaching these thresholds are sometimes classified as "doubtful." Where incidental non-halal income falls below the 5% threshold, Muslim investors are advised to purify that portion by donating an equivalent amount from their dividends to charity.
The NGX Lotus Islamic Index — The Official Authority
The NGX Lotus Islamic Index (NGXLII) was developed by Lotus Capital Limited, one of Nigeria's foremost Islamic finance specialists, in partnership with the Nigerian Exchange. Every constituent stock is screened and approved by a recognised Shariah Advisory Board, applying AAOIFI standards — the same framework used by Islamic indexes globally, including the Dow Jones Islamic Market Index.
The index currently comprises 12 Shariah-compliant equities, rebalanced semi-annually in June and December. The most recent rebalancing was in December 2025, when Presco PLC was added as the 12th constituent. The next scheduled rebalancing is June 2026.
Investors can also gain exposure to the full index through the Lotus Halal Equity ETF (NGX: LOTUSHAL15) — a listed fund that tracks the NGXLII and can be bought through any stockbroker, just like a regular share. It was launched in August 2014 and remains the only Shariah-compliant equity ETF listed on the Nigerian Exchange.
The 12 Official Halal Stocks on the NGX (2026)
Source: Lotus Capital LHE ETF Fact Sheet, March 2026. Next rebalancing: June 2026.
1. Dangote Cement (DANGCEM) — Industrial Goods
Nigeria's largest cement producer and one of the biggest companies on the NGX by market capitalisation. Cement manufacturing is a wholly permissible activity with no haram business element. DANGCEM's industrial scale and strong operating margins keep its financial ratios comfortably within AAOIFI thresholds.
2. BUA Cement (BUACEMENT) — Industrial Goods
The second major cement player on the index. Like Dangote Cement, its business is straightforward manufacturing of a construction material with no prohibited activities. BUA Cement has been on the index consistently and benefits from Nigeria's sustained infrastructure demand.
3. Lafarge Africa / WAPCO (WAPCO) — Industrial Goods
The Nigerian arm of the global LafargeHolcim group. Cement and building materials manufacturing — a capital-intensive but permissible industry. The AAOIFI debt screen is the key hurdle for capital-intensive industrials; WAPCO's Shariah board approval confirms it clears the 30% threshold.
4. BUA Foods (BUAFOODS) — Consumer Goods
One of Nigeria's largest food manufacturers, producing pasta, sugar, flour, and edible salt. Food production (absent alcohol and pork) is straightforwardly permissible, and BUA Foods' business mix contains no prohibited activities. Strong cash generation and a relatively clean balance sheet keep its financial ratios in compliance.
5. NASCON Allied Industries (NASCON) — Consumer Goods
A Dangote Group subsidiary producing salt, seasoning, and tomato paste. NASCON was the top-performing stock in the index in Q1 2025, delivering +46.76% year-to-date. Its business — food seasoning — has no proximity to haram activities, and its asset-light model tends to keep debt ratios low.
6. MTN Nigeria (MTNN) — Telecommunications
The largest telecommunications company in Nigeria by subscriber base. Telecoms services are permissible, though MTN's scale means its Shariah board review pays close attention to its financing structure and any interest income on its cash holdings. Its continued presence on the NGXLII confirms it has cleared those tests. MTN Nigeria is the largest stock in the index by weighting.
7. Aradel Holdings (ARADEL) — Oil & Gas
Nigeria's largest indigenous upstream oil and gas company. Upstream oil exploration and production is a permissible activity under AAOIFI standards — the prohibition on interest applies to financing, not to the commodity. Aradel is one of the strongest-performing NGX stocks of recent years and brings significant Oil & Gas exposure to the index.
8. Okomu Oil Palm (OKOMUOIL) — Agriculture
A leading palm oil producer. Agricultural production is inherently permissible, and Okomu's focused agribusiness model — plantation-to-refinery — has no haram component. Its strong dividend track record makes it attractive for income-oriented halal investors.
9. Presco PLC (PRESCO) — Agriculture (Added December 2025)
Nigeria's second-largest palm oil company, added to the index in the December 2025 rebalancing. Like Okomu Oil, Presco operates a fully integrated palm oil operation. Its addition reflects the Shariah board's continued confidence in the agricultural sector and Presco's improving financial ratios.
10. Nigerian Aviation Handling Company (NAHCO) — Aviation
Ground handling and cargo services for airlines at Nigerian airports. NAHCO was the second-best performer in Q1 2025 with a +45.28% year-to-date gain. Aviation services are permissible, and NAHCO's service-business model tends to carry lower debt burdens relative to asset-heavy industrials.
11. Jaiz Bank (JAIZBANK) — Banking
Nigeria's first and only fully non-interest commercial bank. Jaiz Bank operates entirely on Islamic finance principles — Murabaha, Musharaka, Ijara — with zero conventional interest-bearing products. It is the only bank on the NGXLII and the only one that could ever qualify, by design. Jaiz Bank is a direct play on the growth of Islamic finance in Nigeria.
12. Chemical and Allied Products (CAP) — Industrial Goods
A leading manufacturer of paints and coatings in Nigeria (the Nigerian arm of AkzoNobel). Paints manufacturing is a permissible industrial activity. CAP consistently passes AAOIFI ratio screens due to its lean operating structure and moderate leverage.
Sector Breakdown of the 2026 Index
| Sector | Weight |
|---|---|
| Industrial Goods | 30.30% |
| Oil & Gas | 20.95% |
| Telecommunications | 16.69% |
| Consumer Goods | 13.58% |
| Agriculture | 8.90% |
| Aviation | 2.92% |
| Banking | 1.78% |
Source: Lotus Capital LHE ETF Fact Sheet, March 2026
The absence of conventional banking from any meaningful weight is the most visible feature of a halal-screened portfolio. In a market where banks often dominate trading volume and index weighting, the NGXLII tilts toward the real economy — cement, agriculture, food, energy — which has historically generated strong fundamental returns.
Why Major NGX Stocks Are Not on the List
Conventional banks (GTCO, Zenith Bank, Access Holdings, UBA, First HoldCo, FCMB and others) fail the business activity screen outright. Their core business is receiving deposits and lending at interest — the definition of riba under Islamic finance. No ratio screen matters; they are disqualified at the first gate.
Breweries (Nigerian Breweries, Guinness Nigeria, International Breweries) fail because alcohol production is explicitly haram. This applies regardless of financial performance.
A company in an otherwise permissible industry may also fail if its debt-to-market-cap exceeds 30% or if it earns more than 5% of revenues from interest on cash and bond holdings. This is why some seemingly permissible stocks do not appear on the index — the Shariah Advisory Board reviews the actual financial statements, not just the business description.
How to Invest in Halal NGX Stocks
Option 1 — Individual stocks. Open a CSCS account through any SEC-licensed stockbroker and buy the 12 constituent stocks directly. You retain control over which names to hold and in what proportion.
Option 2 — The Lotus Halal Equity ETF (LOTUSHAL15). This is the simplest route. One trade gives you exposure to all 12 officially screened stocks, weighted by market capitalisation and rebalanced automatically every six months by Lotus Capital's team. It trades on the NGX like any other stock.
Track live prices. You can monitor all 12 NGXLII constituent stocks — prices, charts, and corporate actions — on NGX Pulse.
Frequently Asked Questions
What is a halal stock?
A halal stock is a share in a company that (1) derives its revenue from permissible business activities under Islamic law, and (2) passes AAOIFI financial ratio thresholds for debt, interest income, and cash holdings. A stock must clear both screens to be considered Shariah-compliant.
What is the NGX Lotus Islamic Index?
The NGX Lotus Islamic Index (NGXLII) is the only officially Shariah-screened equity index on the Nigerian Exchange. It is developed by Lotus Capital Limited, reviewed by a certified Shariah Advisory Board, and rebalanced every six months. As of 2026, it comprises 12 Nigerian stocks across industrial goods, oil and gas, telecoms, agriculture, consumer goods, aviation, and banking.
Is MTNN (MTN Nigeria) a halal stock?
Yes. MTN Nigeria is an official constituent of the NGX Lotus Islamic Index as of 2026, confirmed by the Lotus Capital Shariah Advisory Board. Telecommunications services are a permissible business activity, and MTN's financials have cleared the AAOIFI ratio screens.
Is GTCO halal?
No. Guaranty Trust Holding Company is a conventional commercial bank. Its core business — interest-based deposit-taking and lending — constitutes riba under Islamic finance principles and fails the business activity screen outright. This applies to all conventional Nigerian banks.
Are Nigerian Breweries or Guinness halal?
No. Both companies produce and distribute alcohol, which is haram under Islamic law. They are excluded from consideration regardless of their financial ratios.
Is there a halal ETF I can buy on the Nigerian Exchange?
Yes. The Lotus Halal Equity ETF (NGX: LOTUSHAL15) tracks the NGX Lotus Islamic Index and can be purchased through any stockbroker on the Nigerian Exchange. It was launched in August 2014 and provides diversified exposure to all 12 officially screened halal stocks in a single trade.
How often is the halal stock list updated?
The NGX Lotus Islamic Index is rebalanced semi-annually — in June and December each year. Stocks are added or removed based on their continuous compliance with the Shariah Advisory Board's criteria. Presco PLC was the most recent addition, joining in December 2025.
Is it permissible in Islam to invest in stocks?
Yes. Investing in shares of a company is generally permissible under Islamic finance, as it represents ownership of a real business and participation in its profits and losses — not a lending relationship at interest. The key requirement is that the company's business and financial structure meet Shariah-compliant criteria, which is what the NGXLII screening process verifies.
Bottom Line
Nigeria has roughly 100 million Muslim citizens — one of the largest Muslim populations in the world — yet dedicated, criterion-explicit halal investment content for the Nigerian market is almost non-existent. The NGX Lotus Islamic Index fills that gap with a rigorous, officially governed, semi-annually reviewed list of Shariah-compliant equities.
The 12 official halal stocks for 2026 are: DANGCEM, BUACEMENT, WAPCO, BUAFOODS, NASCON, MTNN, ARADEL, OKOMUOIL, PRESCO, NAHCO, JAIZBANK, and CAP. They are not just compliant — they have a track record of performance, with the index gaining +50.56% in 2024 and outperforming the ASI as the top-performing NGX index in Q1 2025.
For Muslim investors who have been sitting on the sidelines because they were unsure which stocks were permissible, the answer is now on this page.
Data sources: Lotus Capital LHE ETF Fact Sheet (March 2026), Nairametrics NGX Index Q1 2025 Report, AAOIFI Shariah Standard No. 21, NGX Group.