Frequently Asked Questions

The NGX Lotus Islamic Index is compiled by a qualified Shariah Advisory Board using recognised screening criteria. Stocks in the index are considered halal based on that assessment. However, the index is reviewed twice per year, and a company's status can change if its business or financial ratios change. We treat Lotus inclusion as a strong indicator, but not a final fatwa. You should still consult a qualified Shariah scholar if you have doubts about a specific stock.

Generally yes. Dividends paid from the genuine profits of a halal business are considered permissible income. They represent your share of the company's real earnings from its trade. This is different from interest (riba), which is a guaranteed return regardless of profit. However, if a company earns a small portion of its revenue from non-halal sources, some scholars recommend "purifying" the equivalent proportion of your dividend by giving it to charity.

If a company you own becomes non-compliant — perhaps because it acquired a conventional bank or its debt ratio deteriorated — most Islamic finance scholars advise that you should sell those shares. You should not hold shares in a company knowing it fails Shariah screening. Any profits made during the period it was compliant are generally considered permissible. Consult your Shariah scholar for specific guidance on your situation.

Most telecom companies, including MTN Nigeria, carry some interest-bearing debt as part of normal business operations. The key question is whether that debt is within the acceptable threshold (under 33% of total assets) and whether interest income is minimal (under 5% of revenue). MTN Nigeria passes both checks and is included in the NGX Lotus Index. The Shariah Advisory Board has reviewed this and determined it is permissible. The general principle is that a company that happens to carry some conventional debt is different from a company whose core business is interest.

Doubtful means there is a legitimate concern but it falls in a grey area where scholars may disagree. Common reasons for a Doubtful rating include: a subsidiary that earns some interest income, elevated but not clearly excessive debt levels, or limited information about a specific revenue stream. We recommend not investing in Doubtful stocks without first consulting a qualified Shariah scholar. Do not take our Doubtful label as permission to proceed — it is a flag that you need to do more due diligence.

We use a two-stage process. First, we check what the company does. If the core business involves alcohol, tobacco, conventional banking, gambling, pork, or weapons, it fails immediately. Second, if the business passes, we check three financial ratios using the company's annual report: (1) interest-bearing debt below 33% of total assets, (2) interest income below 5% of total revenue, (3) haram revenue below 5% of total revenue. These thresholds follow AAOIFI and NGX Lotus methodology. Read our full methodology page for more detail.

We aim to review each stock at least once a year, using the most recent annual report published on the NGX. Stocks in the NGX Lotus Index are also automatically reviewed when Lotus Capital publishes its bi-annual review in January and July. If a company files a new annual report or announces a major business change, we flag it for priority re-review. Each stock detail page shows the date of the last review.

Our ratings are educational assessments based on publicly available data and widely referenced methodology. They are not fatwas. If you believe a rating is wrong — for example, because you have found more recent financial data or a different scholarly opinion — please treat our label as one input among many. The final decision is yours, and we strongly recommend consulting a qualified Islamic finance scholar.

Yes. You can start with the minimum lot size (100 shares) of any stock. Some stocks on the NGX have share prices below ₦10, which means you could start with as little as ₦1,000. However, you will also need to pay stockbroker commissions (typically around 1.35% of transaction value) and other NGX fees. For most beginner investors, building up savings first and then investing a meaningful amount is more practical than starting with a very small amount where fees take a large percentage.

These terms are often used interchangeably. A "share" refers to one unit of ownership in a specific company. A "stock" can refer to the same thing, or it can refer to shares in general as an asset class. When we say "buy stocks" or "invest in the stock market," we mean buying shares in companies listed on the NGX.

Yes, the majority of contemporary Islamic scholars consider stock market investing permissible, provided the companies you invest in pass Shariah screening. Owning shares means you are a part-owner of a real business. You share in its profits and losses. This is different from lending money at interest. The key conditions are: the company's business must be halal, the financial structure must not involve excessive interest-based debt, and the investment should be for genuine ownership — not pure gambling.

No. HalalStock is an educational platform. We do not provide fatwas, Shariah certifications, or religious rulings. Our halal ratings are based on widely referenced screening methodology using publicly available data. For a formal religious opinion about a specific investment, please consult a qualified Islamic scholar — ideally one with expertise in Islamic finance.

No. HalalStock is not a licensed investment adviser, and nothing on this site is investment advice. We do not recommend specific stocks to buy or sell. We teach you how to understand Shariah screening, how stocks work, and how to think about halal investing. Investment decisions are yours alone to make, ideally with the help of a licensed financial adviser and a qualified Shariah scholar.

No. HalalStock is an independent educational platform. We are not affiliated with, endorsed by, or connected to NGX Group, Lotus Capital Limited, AAOIFI, or any other organisation mentioned on this site. We reference these organisations as credible data sources — that is all.

No. A halal rating only tells you that a stock has passed Shariah screening — that the company's business and financial structure are permissible. It does not predict how the share price will move. Even halal companies can see their share prices fall due to poor management, economic downturns, or industry challenges. Investing always carries the risk of capital loss. Halal investing is about earning money the right way — it does not remove financial risk.