The Nigerian financial sector has craved an alternative banking model for years, to meet the needs of citizens that prefer the non-interest transaction and investment option.
Jaiz Bank Plc, Nigeria’s first non-interest Islamic bank was founded at a time when customers of conventional banks, especially those in the Northern region of the country, were eager to have a banking option that enables responsible and ethical trading.
As a reputable financial services institution, the bank has been delivering banking services for retail, commercial and corporate sectors. While offering a wide range of products from transactional accounts and term savings to working capital, real estate, personal, medical, education and project finance, Jaiz Bank provides online banking, leasing, banking cards and bonds and guarantees.
The company is poised to cater for myriad of customers across its over 50 branches in Nigeria, and its heterogeneous clienteles that are scattered within the African sub-region.
In over twelve years of operations, the bank endured the twist and turns of the challenging and constantly dynamic economic landscape in Nigeria. Consequently, in four years, the bank started declaring impressive performance year-on- year and profit across key financial metrics and strategic initiatives.
Jaiz Bank, in its most recent report of second quarter, 2024, declared impressive earnings results. The bank reported a net interest income of N12.47 billion compared to N8.40 billion posted in the corresponding year 2023. The net income was N5.43 billion compared to N2.17 billion a year ago. Basic earnings per share from continuing operations was N0.15 compared to N0.063 in 2023.
For the six months in 2024, net interest income was N23.06 billion compared to N15.53 billion in 2023. Net income was N11.28 billion compared to N 3.77 billion a year ago. Basic earnings per share from continuing operations was N 0.32.
Meanwhile, in line with the bank’s strategic objective towards economic resuscitation, Small and Medium-sized Enterprises (SMEs), which accounts for 96% of businesses and 84% of employment in Nigeria, began to access funding and facilities through a consolidated financing enabled by Jaiz Bank.
It became necessary for the bank to channel part of its investments to stimulating local businesses and foster financial inclusion that would impact its customers. According to the Nigerian Small and Medium Enterprises Development Agency (SMEDAN),
“SMEs in Nigeria account for more than 50% of industrial employment and contribute approximately 48% to the country’s GDP.”
In the meantime, more SMEs in Nigeria are giving testimonies of their profits and proceeds accruing from the supplementary income received from Jaiz Bank flexible loan to small holder business owners.
A 33-year-old petty trader and cobbler, Abdulbasit Muhammad Auwal, had to start shoe-making business with N100,000 many years after graduating from the University but couldn’t a white collar job.
“I had to wait for a year before I was mobilized for the National Youth Service Corps (NYSC). During this period, I requested a cobbler who used to produce my shoes to engage me as apprentice. I told him that people always admire my shoes and that I think I will start selling them. That’s how it all started,” Auwal explained that “After learning the skills of shoe making, I started the business alone; producing shoes myself and supplying it to the market before getting some apprentices. But now, I have about ten certified staff while others are still being trained, thanks to my banking partner, Jaiz Bank Plc.”
More citizens, like Auwal, who have benefited from Jaiz Bank’s non-interest facilities with a view to growing their businesses are being supported and lifted out poverty in Nigeria.
Nana Firdausi Habib, a successful entrepreneur well-known for utilising her social media presence in promoting her business, was able to expand business empire after accessing the Bank’s SME loan. From supplying kitchen utensils and gadgets to delivering to myriad of her customers’ luxurious foreign furniture sets, Nana experienced an unprecedented surge in profit haven utilised the loan to acquire more products from China.
She said: “My line of business is interior décor accessories, which I import directly from Turkey and China. The business niche is purely online with delivery arrangement to every nook & cranny of the country.”
According to Nana, her initial business capital came from personal savings and borrowings from family members. “Then, I later got a facility from Jaiz Bank Plc. and with the money obtained, we were able to expand from the décor items to include home furniture,” she explained.
Ruqoyah Ajibola Abdulsalam, an Abuja-based entrepreneur, said her business encompasses a wide range of services, including printing, branding, designing, and the sales of high-quality souvenirs.
Although Ruqoyah’s modest achievement in printing press business has been adjudged by many as “successful”, she started up as a humble beginner a few years ago, raising capital from family and friends.
“We approached Jaiz Bank for soft loans to acquiring major machines through their Jaiz SME package which was a remarkable transaction that enhanced our business fortune,” she explained.
Meanwhile, the Bank is stimulating the agricultural sector with huge investments, notably the financing of a 10, 000ha irrigation farm at Udubo, Gamawa, LGA of Bauchi State. Tiamin Rice Limited, one of the Jaiz Bank’s customers was one of the several agricultural and allied businesses the Bank funded in recent times.
