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Jaiz Bank has announced its plan to increase its capital base to N70 billion by the end of this year, reinforcing its commitment to becoming the center of Islamic banking in Africa.
The announcement was made by Mustapha Bintube, Chairman of the Board of Directors, during a send-off ceremony in Abuja for 11 retiring board members, including the bank’s pioneer chairman, Alhaji Umar Abdulmutallab.
Since its inception in 2012, Jaiz Bank has been a pioneering non-interest bank in Nigeria, providing ethical financial services to individuals, corporations, and government entities. During the event, Bintube highlighted the bank’s impressive financial performance and its innovative banking system that offers alternatives to traditional banking operations.
Jaiz Bank achieved a profit of N11 billion in 2023 and has already surpassed this profit figure as of June 30, 2024, indicating robust growth and operational success. Bintube stated, “With the recapitalisation exercise, we have banks sourcing funds, but today Jaiz already met up that minimum recapitalisation and we plan to hit N70bn capital base by year-end.”
The Central Bank of Nigeria has set a deadline of March 31, 2026, for Jaiz Bank and other non-interest banks aiming for national status to achieve a capital base of N20 billion. Currently, Jaiz Bank has a paid-up capital base of N18.6 billion, just N1.4 billion short of the target.
Bintube also shared the bank’s expansion plans, growing from its initial three branches in Abuja, Kaduna, and Kano to a current total of 54 branches, with plans to reach 60 branches by the end of the year. “Our major dream is to expand our presence globally,” he said, reflecting on the bank’s humble beginnings in 2012 with an initial capital of N6 billion.
He credited the bank’s success to its dedicated team and strategic partnerships, which have enabled it to thrive in the competitive financial sector. Former Chairman Dr. Umar Abdulmutallab expressed his pride in Jaiz Bank’s achievements as Nigeria’s first non-interest Islamic bank and commended the efforts of various institutions, particularly the Islamic Development Bank, which played a crucial role in the bank’s establishment.
Mutallab recalled the challenging early days when Jaiz Bank’s promoters had only N4 billion, and it was the timely intervention of Africa’s richest man, Alhaji Aliko Dangote, who provided N1 billion to meet the N5 billion required for registration, that saved the venture from collapse. He also praised former Central Bank Governor Lamido Sanusi for his support in realizing the dream of Jaiz Bank.
In his address, Mutallab acknowledged and appreciated the contributions of individuals and institutions, both living and deceased, who supported the bank’s journey. “Jaiz Bank sees itself as a major Islamic bank in Nigeria,” he stated, urging the current management to continue striving for excellence and expansion.
Jaiz Bank’s commitment to non-interest banking principles and its focus on ethical financial services have positioned it as a trailblazer in Nigeria’s banking sector. As the bank looks forward to reaching new heights, it remains dedicated to serving its customers with integrity and innovation.
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