Educational Disclaimer: This site is for education only. We do not give investment advice. Shares are volatile — prices go up and down and you may lose money. Always do your own research and speak to a professional adviser.
What does "halal" mean on this site?
When we call a stock halal on HalalStock, we mean it passes a standard Shariah screening based on two things: what the company does, and how it is financed.
A company fails if its main business involves alcohol, tobacco, pork, conventional banking or insurance, gambling, weapons, or other clearly prohibited activities.
A company also fails if its financial structure relies too heavily on interest-bearing debt, or if a significant portion of its income comes from interest or other prohibited sources.
This approach is consistent with the methodology used by most Islamic finance institutions worldwide, including the AAOIFI standards referenced below.
Our screening process — step by step
Business activity check
We look at what the company actually does to earn money. If the core business is prohibited — alcohol, tobacco, conventional banking, gambling, pork, pornography, weapons — the stock is automatically non-compliant. No ratio analysis needed.
Financial ratio check
If the business activity passes, we check three key numbers from the annual report: (1) Debt ratio — total interest-bearing debt must be below 33% of total assets. (2) Interest income ratio — income from interest must be below 5% of total revenue. (3) Haram revenue ratio — revenue from prohibited sources must be below 5% of total revenue. These thresholds follow widely referenced Islamic finance screening standards.
Status assignment
All checks pass → Halal. Business is clean but a ratio is borderline → Doubtful. Core business is prohibited or a ratio fails clearly → Non-compliant. We also add an "Under Review" label when data is pending or a new annual report has been filed.
Annual review
We check each stock at least once a year using the most recent annual report and NGX filings. If a company files a new annual report before our next scheduled review, we flag it for priority re-review.
What HalalStock is NOT
HalalStock is an educational tool. It is not a Shariah certification body. We do not issue fatwas. We do not give investment advice.
Our labels are based on publicly available financial data and widely referenced screening methodologies. They are designed to help you learn, not to replace the advice of a qualified Shariah scholar or a licensed financial adviser.
Where does our data come from?
Our halal status list starts with the NGX Lotus Islamic Index, published by the Nigerian Exchange Group. We treat NGX Lotus inclusion as a strong indicator of Shariah compliance.
We also cross-reference against screening criteria published by AAOIFI (Accounting and Auditing Organisation for Islamic Financial Institutions), one of the most widely recognised Islamic finance standard-setting bodies in the world.
For stocks outside the Lotus Index, we reference third-party tools including Islamicly and apply AAOIFI ratio thresholds using data from each company's most recent NGX-published annual report.
Stock prices and market data are sourced from publicly available NGX market data, updated daily after market close.
What should you do with Doubtful stocks?
Some stocks sit in a grey area. Scholars may disagree on them. We label these Doubtful rather than halal or non-compliant.
A stock might be Doubtful because: a subsidiary earns a small amount of interest income; the company has borderline debt levels; or there is limited information available about a particular revenue stream.
What is the NGX Lotus Islamic Index?
The NGX Lotus Islamic Index is published by the Nigerian Exchange Group in partnership with Lotus Capital Limited, Nigeria's pioneer Islamic asset manager. It lists stocks independently assessed for Shariah compliance by a qualified Shariah Advisory Board.
The index is reviewed bi-annually — in January and July each year. Composition can change at each review if a company's business or financial ratios change.
We reference this index as our primary input, but we do our own review. A stock in the NGX Lotus Index may still be marked Doubtful by us if we find a concern in our own analysis. We also include stocks outside the index if they pass our screening from other trusted sources.
How often do we update the screener?
We aim to review each stock at least once a year, after its annual report is published on the NGX. We also update a stock if a major business change is announced — such as an acquisition or a change in financing structure.
Each stock detail page shows the date of the last review and what source we used. If a stock was not reviewed in the past 18 months, we mark it "Under Review — check back soon."