Jaiz Bank History
Jaiz Bank PLC is a national bank and a quoted public company owned by over 26,000 shareholders spread over the six geo-political zones of Nigeria.The Bank’s balance sheet has grown from N12 billion in 2012 to about N62 billion, with asset financing of over N30 billion. Our customer base has grown to over 230, 000 cutting across all strata of the society. Our product offerings have grown substantially ranging from friendly retail to commercial and corporate products. We have also grown our branch network from 3 branches in 2012 to 30 branches, spread across the country. We are building more branches to satisfy the yearnings of millions of people who are desirous of this model of banking.
The Bank was created out of the former Jaiz International Plc which was set up in 2003/2004 as a Special Purpose Vehicle (SPV) to establish Nigeria’s first full-fledged Non-Interest Bank. It obtained a Regional Operating Licence to operate as a Non-Interest Bank from the Central Bank of Nigeria on the 11th of November 2011 and began full operations as the first Non-Interest Bank in Nigeria on the 6th of January, 2012 with 3 branches located in Abuja FCT, Kaduna and Kano. The Regional Licence allowed the Bank to operate geographically in a third of the country. Also, based on recommendations from Islamic Development Bank (IDB), which is also a shareholder of the bank, Jaiz Bank PLC had partnered with Islamic Bank of Bangladesh (IBBL) for Technical and Management Assistance.
About Islamic Banking
Non-Interest Banking is a profitable growing global phenomenon practiced in nearly 70 countries across the world including the United Kingdom, Canada, the United States of America, the United Arab Emirate, Malaysia, China, Singapore, South Africa, Kenya etc. Global Banks like HSBC, Citibank, Barclays Bank etc. are also offering non-interest banking products and service.It is an alternative financial service offering which is open to all irrespective of race or religion. It is based on the ethical principles of fairness, transparency and objectivity. Non-Interest Banking offers almost all the services of conventional banks. The difference is that non-interest Islamic Banks do not give or receive interest, nor finance anything that is harmful to society like alcohol, tobacco, gambling etc. They also seek to avoid gharar- speculation, uncertainty deception and more. Currently, about 50% of Nigeria’s total population of 183 million are craving for such Non-Interest banking services. These people are desirous of ethical banking services which provide for socially responsible investment outlets. In a nutshell, Non-Interest Banking is real-economy oriented and profit and loss sharing arrangement where the mode of financing is mostly on mark-up, leasing and partnership basis.
The Investment Opportunity
Jaiz Bank Plc upgraded to a National operating license in 2016. The upgrade has enabled it to operate in all 36 states of the Federation including the Federal Capital Territory. Consequently, it increased its authorised Share Capital from N15 billion (USD $47.8 million) to N25 billion (USD $79.6million). (Note that the exchange rate used was the prevailing rate at the end of 2016.)
The Potential for Non- Interest Bank in Nigeria
The business potential for a Non-Interest Bank in Nigeria is enormous as such an institution has long been awaited by a population of over 93 million Nigerians representing over 50% of the country’s population of about 183 million. Jaiz Bank’s strategic business focus is mainly on retail banking, having due regard to a report published by KPMG in 2006 which estimated the market for retail banking in Nigeria at US$30 Billion. The Bank nevertheless offers corporate and commercial banking services in addition to its retail product offering. The Bank’s retail focus will enable it to service the majority of Nigerians who wish to do away with Riba (Usury) in their daily activities. The Bank is being positioned to be a national bank offering its services to all regardless of religious beliefs.
What the Bank will be
- 100% Shari’ah compliant
- Highly ethical, with best practice corporate governance and sound risk management framework.
- Proactive and innovative towards customer’s needs
- Best-practice operations and functional framework
- Socially responsible
- Fair to all Stakeholders
- Ideal business partner
What the Bank will not be
- Religious bias
- Offer all things to all people
- Mediocre performer
- Imitate other banks
- Sacrifice Shari’ah principles for profit