Open Space Financial Service, a new fintech company stepped up recently to widen the lending and credit space for borrowers gasping under the burden of 15 percent loan interest payments in Nigeria.

That is going to be the first of its kind in Nigeria’s fintech industry.

The company said its recent application for the non-interest financial tech services license will serve Nigerians on the fringes of the financial system.

More than 60 percent of Nigerian adult income earners already have accounts with banks and other fintechs. At another level, the accounts might be glowing in red— for many reasons, including lack of access to loans.

This class of account owners, for fear of loan sharks, steer clear of the credit and lending services which form 25 percent of the fintech industry. No fewer than 284 companies, compete to own the market.

In its drive, Open Space would, according to its non-interest finance adviser, Zubair Mughal, will first obtain the appropriate regulatory licenses. A Sukuk issuance then follows that.

Everyone is doing it

Sukuk is a model of Islamic banking that ties loans to bankable projects and profit sharing instead of interest.

Already hitting the N5-trilliin point, Islamic banking has been supporting the federal and state governments, and lending to individual business owners across Nigeria.