Nigeria

#Nigeria to offer liquidity support to boost Islamic banking

Nigeria’s central bank is setting up two financial instruments to provide liquidity support to boost Islamic banking. The central bank has been working to set regulatory ground rules for sukuk and takaful to try to emulate the success of the industry in Malaysia. Islamic banking services are currently offered by the Islamic window of Sterling Bank, Stanbic IBTC and Jaiz Bank, but Nigeria wants to increase the sector. The country is gradually opening up to Islamic finance to bring non-interest banking to over 80 million Muslims. In October the regulator granted liquidity status at its discount window for banks' investment in Islamic bonds issued by national governments, and for banks’ liquidity ratios. Nigeria launched a 100 billion naira ($318 million) debut sovereign sukuk in the local market in June to help develop alternative funding sources.

Bridging the $300b #infrastructure #gap with Islamic finance

In #Nigeria about $300 billion (N108.75 trillion) is required to close the country's infrastructure gap. To close the gap, the Federal Government has turned to the Islamic Development Bank (IsDB). Some financial analysts are warning that this is capable of undermining the nation’s constitution and its secularity. While insisting on the need to defend Nigeria’s secularity, some of them pointed out that there are other viable options and numerous non-religious lending institutions Nigeria can turn to for help. For example, public affairs analyst, Barr Obiora Akabogu, said Nigeria could fall back on the Sovereign Wealth Fund (SWF) to raise cash. Nigeria’s pension fund, which stood at N6.02 trillion as at last November, is another viable option to build infrastructure. Others have recommended the Public-Private Partnership (PPP) model for designing, building, financing and operating new infrastructure.

Why we’ve not paid #dividends yet – #JAIZ #Bank CEO

Malam Hassan Usman, CEO of JAIZ Bank, perfected a partnership with Borno State government on the reconstruction of the state economy.
Usman said, that the fourth branch of JAIZ Bank had been opened in Nigerias Maiduguri about five years ago. And it has so far been getting the strong support of the state government since the branch was opened. So he was in Nigeria to explore the ways and means to reciprocate this kind gesture by the state government. His bank wants to help Governor Kashim Shettima in all his efforts to turn things around, especially now that peace and normalcy are gradually being restored in Maiduguri and the entire state.
JAIZ bank has launched a programme, which is being implemented since the beginning of the rainy season, to provide small-holder farmers with inputs. It is working with the coordinator as well as the private sector partner for the state to provide the seeds, fertilizer and other inputs to the partner. The idea of the state government is to start with 5,000 farmers, which it wants to empower at this initial phase of the programme.

Jaiz Bank grows capital base to N15bn within 5 years

#Nigeria's Jaiz Bank has grown its capital base in five years from the initial N5 billion to over N15 billion. The bank disclosed that it is growing at an annual rate of 30% which makes it one of the strong players in Nigeria’s banking industry. CEO Hassan Usman said the management of the Bank grew Deposit Base from Zero to over N60 billion, and Asset Base increased from zero% to N40 billion. He added that the bank plans to grow its network through opening of additional new branches across the country. Jaiz Bank currently has a staff of 500 and has concluded plans to open new branches in Jos, Nassarawa, and Minna, as well as additional branches in Lagos. Commenting on the plan by the Debt Management Office (DMO) to float Sukuk, Usman described the move as a welcome development which is expected to go a long way in boosting the operations of the bank.

E-auction: Why we selected only Jaiz bank – Customs

The Nigeria Customs Service announced that only Jazz Bank was able participate in the first bidding of its e-auction exercise. Joseph Attah, the Customs National Public Relations Officer (PRO), said that Jazz Bank was the only one out of the 23 customs duty collecting banks that accessed the e-auction platform. The PRO said that all the 23 Customs duty collecting banks were carried along and the process was subjected to user acceptability test. Throughout the testing period, no bank indicated any problem with the platform. However, upon launch only Jaiz Bank was discovered to be ready and active on the platform. Attah noted that the first 48 hours bidding period produced 43 winners. Items uploaded were 130 vehicles, 43 people placed their bids and won vehicles.

Raising funds through #sukuk: The prospects, the drawbacks

#Nigeria announced the issuance of N100billion ($328million) sukuk, which brings to close a process that started last year. The first sign of the process was given last year by Alhaji Mahmoud Isa-Dutse, Permanent Secretary at the Ministry of Finance. He said that sukuk could be linked to a wide range of projects from power plants to railways. The sukuk is a 7-year tenor debt instrument which will go on sale from June 28, 2017, for three days via book building. It will be traded on the Nigerian Stock Exchange (NSE) and the FMDQ Securities Exchange OTC platform. Dr. Abraham Nwakwo, Director General of the Debt Management Office, said the sukuk was part of the plan to fast track the development of infrastructure and engage in project-tied capital raising.

The #Sukuk Investment Opportunity

The #Nigerian Debt Management Office (DMO) is accessing the local market for N100 billion through Sukuk. The first Nigerian Sukuk is a 7-year tenor debt instrument and will go on sale from June 28, 2017, for three days via book building. It will be traded on the Nigerian Stock Exchange (NSE) and the FMDQ Securities Exchange OTC platform. The bond will target retail and institutional investors, while First Bank and Islamic wealth manager Lotus Capital will act as managers for the sale. According to DMO, the introduction of Sukuk is not only a way of raising capital for the government and promotion of greater financial inclusion, it is also part of the plan to fast track infrastructure development. The current manager of DMO, Dr. Abraham Nwankwo will be leaving office at the end of June and the Sukuk issuance is seen as his parting gift.

#Nigeria plans $328mln debut #sukuk sales this month - DMO

Nigeria's Debt Management Office (DMO) announced the sale of its initial $328 million sovereign sukuk in the local market. The proceeds will be used to finance road projects in the country. The bond will be traded on the Nigerian Stock Exchange and also on the FMDQ over the counter platform. The sale will be managed by First Bank and Islamic wealth manager, Lotus Capital, and will aim for retail and institutional investors. Africa’s second largest economy intends to borrow about $10 billion from debt markets to fund a budget deficit aggravated by lower oil prices. It also targets concessionary sources to clear its funding needs and expects to issue N20 billion ($62million) green bond after raising a $1.5 billion Eurobond in the first quarter.

#Nigeria May Become IsDB Regional Hub for Africa

Nigeria may become the regional operational hub of the 43-year old Islamic Development Bank (IsDB) in Africa. IsDB is considering a proposal to expand its existing country gateway office in Abuja to serve as a key regional office. The office will coordinate the operations of the Bank in its West and Central African member-countries. According to the Ministry of Finance, the Abuja gateway office will serve Nigeria, Gabon, Niger, Mozambique, Burkina Faso, the Republic of Cameroon, Uganda, Senegal, Djibouti and Guinea Bisaau, among others. IsDB President Bandar Mohammed Hajjar said the Bank would enhance the development impact of its projects through comprehensive development solutions that integrate services and products in its member-countries.

‘Islamic finance is not religious, but ethical business’

Professor Binta Tijani Jibril is the Director of International Institute of Islamic Banking and Finance, Bayero University, Kano State. In this article she talks about Islamic finance and its role in Nigeria. She believes that Islamic findance will help Nigerians in general in the sense that it will increase financial inclusion. The main challenge in Nigeria is how to educate the people to create awareness of this financial model. Bayero University has now short training programs, a masters degree in Islamic finance and very soon a doctorate programme we will start. There is also a special programme for journalists. According to Professor Jibril, Nigeria may soon raise sukuk, just like Osun state has done. It’s going to be about providing for infrastructure development as well as empowering the citizens. So Nigeria would be expanding and widening its reach into Islamic finance.

SunTrust, ICD Sign Agreement To Establish Non-interest Banking Window

SunTrust Bank #Nigeria has signed an agreement with the Islamic Corporation for the Development of the Private Sector (ICD) to establish a new non-interest banking window. The two institutions said they were determined to collaborate in order to establish a window that incorporates non-interest banking products and services in Nigeria. The CEO of SunTrust Bank, Mr Muhammad Jibrin, noted that the new offering is expected to attract investors from within and outside the country. On his part, Mr. Khaled Al-Aboodi of the ICD said he was looking forward to strengthening mutual efforts in establishing the non-interest window and promoting Islamic finance.

‘Jaiz Bank’s NPL within tolerable limits’

The Managing Director of Jaiz Bank, Hassan Usman, has assured that the bank’s loan profile is very healthy. Jaiz Bank, he noted, was not heavily or significantly exposed to the oil sector, but the bank’s exposure is to real estate. While justifying the listing of the bank’s shares in the Nigerian Stock Exchange (NSE), he said Jaiz Bank’s activities remain transparent and open. Jaiz Bank has challenges like any growing institution. One of such challenges has to do with perception, as many people thought it was a charity organization. Other challenges include the enabling environment like infrastructure for non-interest banking like liquidity instruments. Another challenge is the limited number of qualified trained manpower to manage Islamic banking. Inspite of these challenges, Jaiz Bank has proved itself to be sustainable. It has grown into a national franchise with branches in South and South West and is also opening more branches in other parts of the country.

Jaiz Bank anxious to invest massively in #Sukuk for infrastruture

In #Nigeria Jaiz Bank has accumulated funds and is now ready to massively invest in Sukuk to finance in specific infrastructure projects in the country. Managing Director Hassan Usman said that the bank, being an Islamic bank, could not invest in interests yielding instruments and therefore had to wait until Sukuk was ready. He added that there are off-shore funds held by those who share similar non-interests philosophy of Jaiz Bank which could be brought into the country. Usman said that from a capital base of N5 billion, the bank has grown its capital base to about N50 billion. From a deposit of N3. 5 billion, it has grown to about N60 billion. From the initial three branches as a Regional Bank, Jaiz Bank has grown into a National Bank with 30 branches across the nation.

CEOs advocate collaboration to drive SDGs

Nigerian CEOs have hinged the achievement of Sustainable Development Goals (SDGs) on partnership by businesses. This was stated by CEO of the Sahara Group, Tonye Cole, who delivered a keynote address at the CEO roundtable organised by First Bank of Nigeria in Lagos. Adesola Adeduntan, managing director of FirstBank, said the bank had put in place an environmental, social and governance management system to drive responsible lending and its commitment to financial inclusion. The bank CEO noted that engagement through programmes included over 16 executive education programmes, organised 16 workshops and three international conferences. The bank also empowered over 3,000 Small and medium Enterprises (SMEs). He called on business leaders to consider such partnership for the enhancement of sustainable development.

Jaiz Bank officially lists on #Nigerian Stock Exchange

Jaiz Bank is now a public quoted company listed on the Nigerian Stock Exchange. To commemorate the listing, Jaiz Bank’s Executive Management, led by Chairman Dr Umaru Abdul Mutallab, were honoured with a closing gong ceremony to officially close trading on the bourse for the day. Hassan Usman, Jaiz Bank's CEO noted that the listing of the bank’s shares was a fulfillment of an earlier promise made at inception of the Bank. He added that the listing would elicit public confidence that Non-Interest Banking provides alternative model that contributes to the socio-economic development of the country. Oscar Onyema, CEO of the Nigerian Stock Exchange, said this listing would promote liquidity for the bank, enhance its value and increase its transparency.

Jaiz #Takaful Insurance to commence in 3 states

The Jaiz Foundation has expressed readiness to commence Islamic Takaful Insurance in 3 Nigerian states, Kaduna, Kano and Lagos, with the head office being in Abuja. This was disclosed by the Chairman of Jaiz Takaful Insurance, Dr Umaru Abdul Mutallab, who explained that the insurance products give equal opportunity for customers to be owners of the company as well. Also speaking on the operation of the insurance policy, the Managing Director of Jaiz Islamic Takaful Insurance, Momodou Musa Joof, said the company shares profit by 80% to its participants who have not suffered losses. In the meantime, those who suffer losses would have been paid first before the distribution of profit. The element which goes to the needy called Zakat is also distributed before profit is shared. Joof noted that the good thing in Takaful is that, if no loss occurs, the customer's contribution becomes an automatic investment.

Jaiz Foundation Commences #Takaful Islamic Insurance

The Jaiz Foundation is set to kick start Islamic ‘Takaful’ Insurance in Kaduna, Kano, Lagos with head office in Abuja. As part of the final preparation, the Foundation held a week induction training for the staff of the organization. The chairman of Jaiz Takaful Insurance advised Nigerians to take advantage of the new insurance concept. According to Mananging Director of Jaiz Islamic Takaful Insurance, Momodou Musa Joof, the company shares profit by 80% to its participants who have not suffered losses. In the meantime, those who suffer losses would have been paid first before the distribution of profit. The elements which goes to the needy, which is called Zakat is also distributed before profit is shared. Prominent scholars like Prof Muhammed Nasirudeen Maiturare, the Vice Chancellor of Ibrahim Badamosi Babangida University, also participated in the induction training for the staff of Jaiz Takaful Insurance.

Jaiz Bank lists N29.4bn on stock market

Jaiz Bank added N36 billion to the total market capitalisation of the Nigerian Stock Exchange (NSE). The bank announced the official listing of its ordinary shares of N29.4 billion of 50kobo each at N1.25. The chairman of Jaiz Bank, Alhaji Umaru Abdul Mutallab, debunked insinuation that the bank was designed to only service the Islamic community, saying it was a bank for all Nigerians interested in doing ethical business. Jaiz Bank commenced operations in 2012 with a N3 billion deposit base. Since then it had a growth rate of 30%, with a current workforce of 600 staff across 30 branches across the country. On the future outlook of the bank, CEO Hassan Usman said Jaiz Bank’s prospects are bright, adding that the projection for the next five years indicated a gross revenue of N16 billion by 2021.

Gwandu Emir Hails Jaiz Bank’s Policies

The Emir of Gwandu Muhammad Iliyasu Bashar has commended Jaiz Bank for its banking policies and principles of making life better for people. The royal father made the commendation at his palace when the Managing Director of the bank, Malan Hassan Usman, the Regional Manager, Dr. Nurudeen Liman and Habibu Isa Muhammad, the branch Manager of Birnin Kebbi paid him a courtesy call. Malan Hassan Usman expressed his appreciation of the support rendered by the Emir towards the establishment of the bank. He said the bank started operation 5 years ago with provisional approval to open three branches in Abuja, Kaduna and Kano but now the Central Bank of Nigeria (CBN) has given full approval to the bank to open its branches nationwide. Currently the bank has 27 branches with 3 new ones coming next week.

Emir Sanusi to speak at Islamic finance confab in Kano

Emir of Kano, Malam Muhammad Sanusi II is expected to speak at an Islamic finance conference organized by the International Institute of Islamic Banking and Finance (IIIBF) at Bayero University, Kano. The Director of the institute, Binta Tijjani Jibril, said the conference would draw participants from within Nigeria as well as other countries such as the United States, Malaysia, Saudi Arabia, Morocco, Indonesia and Egypt. She added that when the mayor of London came to Nigeria, he advised the government to embrace Islamic finance because of its benefits. Britain is competing with Malaysia to be the hub of Islamic finance in the world because they see it as good business not a religious issue.

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