In a move aimed at expanding access to ethical investment opportunities and addressing the persistent funding challenges faced by small businesses, Alpha10 Fund Management Limited has unveiled its Alpha10 Halal Fund, a Shari’ah-compliant investment vehicle designed to promote financial inclusion and connect underserved entrepreneurs with regulated sources of capital.
The fund was officially launched in Abuja on Wednesday, with company executives outlining an ambitious strategy that combines investment management, advisory services, and capital-raising support to help micro, small and medium-sized enterprises (MSMEs) become investment-ready.
At the launch event, Managing Director and Chief Executive Officer Abigail Utomi said the firm intends to tackle one of the biggest barriers facing Nigerian businesses: the inability to meet the compliance and governance standards required to attract institutional funding.
"With the way the fund is structured, it addresses that problem because MSMEs can access funding directly or indirectly through the fund," she said.
"Recall that we have an advisory business as well, investment banking and advisory, which helps investors to raise capital and also advises you financially on how to go about it."
Utomi explained that many businesses with strong growth potential struggle to secure financing because they lack the structures and processes that investors require.
"If you need to structure a product to bring your business to market, to put it in a state where it is bankable and investment grade, we could also support you through that business to achieve that," she added.
Expanding Access to Investment Products
Beyond supporting businesses, Alpha10 says the fund is intended to broaden access to wealth creation opportunities for ordinary Nigerians, regardless of their religious affiliation or financial status.
According to Utomi, the company believes investment products should be accessible to everyone and tailored to accommodate different beliefs and preferences.
"We believe strongly that everybody should be able to access wealth management solutions that meet their needs regardless of their beliefs, faith, and preferences," she said.
The Alpha10 Halal Fund has been structured to lower entry barriers for investors, allowing participation with as little as N1,000. The fund operates as an open-ended investment vehicle, meaning investors can increase their holdings at any time and redeem their investments after a 90-day lock-in period.
Management projects annual returns ranging between 14.5 per cent and 16 per cent, although actual performance will depend on prevailing market conditions and the performance of underlying investments.
The fund will primarily invest in Sukuk instruments and other Shari’ah-compliant assets while employing active portfolio management strategies to optimise returns.
To strengthen investor confidence, Utomi emphasized that client funds are held separately from the fund manager.
"UBA is the custodian of our fund, so you can rest assured that your funds are kept in safe hands," she said.
She further noted that the investment product is regulated by the Securities and Exchange Commission and subject to ongoing reporting requirements involving trustees, custodians, and regulators.
According to her, redemption requests are processed within regulatory timelines, although the company aims to complete payouts significantly faster.
Ambitious Growth Plans
Alpha10 currently manages approximately N3 billion in assets across its investment products and has set an ambitious target of increasing total assets under management to N50 billion within the next five years.
The newly launched halal fund, which commenced operations with a minimum fund size of N500 million, is expected to contribute significantly to that growth.
Utomi disclosed that management projects the fund could exceed N10 billion in assets over the same period, reflecting what the company believes will be growing demand for ethical and alternative investment solutions.
From L-R: Head, Strategy and Communications, Alpha10 Group, Tonye Akiga; Chairman, Board of Directors, Chibuzo Ekwekwuo; Group Managing Director, Abigail Utomi; and Independent Non-Executive Director, Mohammed Umar
Bridging Nigeria's Financing Gap
Chairman of the Board, Chibuzo Ekwekwuo, said the company's broader mission is to bridge the disconnect between investors seeking opportunities and businesses struggling to access funding.
"We need to bridge the gap between those who have the funds and those who need it," he said.
"We also need to be able to bring solutions to people at all levels so that people at all levels would benefit from the financial solutions market."
Ekwekwuo identified poor business structuring as a major obstacle preventing many SMEs from qualifying for institutional finance.
"One of the biggest problems for MSMEs is that you need to structure their businesses and their products in a way to access regulated funds," he said.
"Our advisory division will help SMEs to put themselves in the proper manner to meet compliance requirements and be able to access this fund."
He also sought to dispel misconceptions surrounding halal investment products, stressing that such funds are open to all investors and are based on ethical investment principles rather than religious exclusivity.
Focus on Real Assets and Ethical Investing
Earlier, Alpha10's Regional Head for the North, Muhammad Ardo, explained that the fund's investment philosophy centres on real economic activities capable of generating sustainable value.
According to him, the fund seeks to protect investors from inflation by focusing on tangible assets and productive enterprises rather than speculative transactions.
He noted that investments may include schools, student accommodation facilities, warehouses, and other projects that contribute directly to economic development.
The fund excludes sectors prohibited under Islamic finance principles, including gambling, betting, alcohol, tobacco, and similar activities.
Independent Non-Executive Director Mohammed Umar said the initiative could play a meaningful role in expanding financial inclusion across Nigeria.
"This product we're launching today is purely to improve or expand the means by which people can invest their funds," he said.
"It is open for small and large investors in the country."
Umar also advised Nigerians to be cautious when dealing with investment schemes promising unrealistically high returns, emphasizing that Alpha10's strategy focuses on productive assets capable of generating long-term value rather than speculative ventures.
Addressing a Critical Economic Challenge
The launch comes at a time when concerns continue to grow over limited access to finance for Nigerian SMEs.
Recently, the Centre for the Promotion of Private Enterprise highlighted weak credit flows to small businesses despite ongoing banking sector reforms.
The organisation noted that SMEs contribute roughly 50 per cent of Nigeria's Gross Domestic Product and account for more than 80 per cent of employment nationwide. Despite their importance, the sector faces an estimated financing gap of approximately N48 trillion.
Against this backdrop, Alpha10's halal fund and advisory-driven funding model represent an effort to unlock capital for underserved businesses while simultaneously broadening investment opportunities for retail and institutional investors.
If successfully executed, the initiative could help channel more regulated capital into productive sectors of the economy while supporting entrepreneurship, job creation, and inclusive economic growth.