Nigeria

NDIC tasks Jaiz Bank on corporate governance

#Nigeria Deposit Insurance Corporation (NDIC) has challenged the management of Jaiz Bank to strengthen its corporate governance to face the current economic challenges of the country. Umaru Ibrahim, managing director of NDIC, gave the advice to the newly appointed managing director of Jaiz Bank, Hassan Usman. Ibrahim advised the bank to step up its public enlightenment efforts in order to increase deposits' mobilisation. He also noted the bank's challenges in investing its excess liquidity due to the absence of Sharia compliant investment windows. He noted that while a lot of countries had tapped into the Sukuk investment window, Nigeria was still lagging behind in this respect.

Central Bank of Nigeria (CBN) Releases Categorization System for “Non-interest Islamic Microfinance Banks”

The Central Bank of Nigeria (CBN) recently released a new categorization system for "Non-Interest Islamic Microfinance Banks" (NIMFBs). CBN organized NIMFBs into three categories: "Unit", "state" and "national". Unit NIMFBs must have a minimum capital of NGN 20 million (USD 71,000) and may open one branch location within the same municipality as the organization’s headquarters. State NIMFBs may operate in one state if they maintain minimum capital of NGN 200 million (USD 350,000). Institutions in this category may open multiple branches in the state within which their headquarters are registered. A national NIMFB is permitted to operate in any state or territory of Nigeria so long as it holds NGN 2 billion (USD 7 million) in capital.

#Sukuk and Aregbesola’s education story

The State of Osun in southwestern Nigeria raised a sukuk bond worth 10 billion naira ($62 mn) from the capital market to fund educational development. After the recent trend of Eurobond issuance by African countries, Osun’s offering was sowing the seeds for more African sukuk. Prior to Osun, only Gambia and Sudan had issued local-currency short-term domestic notes. Osun's Governor Rauf Aregbesola believes that the potential of Islamic finance can also attract investors from the Middle East. Osun State’s planned multi-billion naira sukuk fund for education represents Nigeria’s most ambitious attempt to promote Islamic finance.

Understanding the #Sukuk fund for education in Osun

The State of Osun in southwestern Nigeria raised a sukuk bond worth ten billion naira ($62 mn) from the capital market to fund educational development. After the recent trend of Eurobond issuance by African countries, Osun’s offering was sowing the seeds for more African sukuk. Prior to Osun, only Gambia and Sudan had issued local-currency short-term domestic notes. Osun's Governor Rauf Aregbesola believes that the potential of Islamic finance can also attract investors from the Middle East. Osun State’s planned multi-billion naira sukuk fund for education represents Nigeria’s most ambitious attempt to promote Islamic finance.

Jaiz Bank: Non-interest banking services not for Muslims only

The Central Bank of Nigeria recently issued a national licence to Jaiz Bank. The bank commenced the first phase of its rollout with branches in Lagos, Port Harcourt, Ibadan and Ilorin and shortly will be present in all the states of the Federation. Jaiz Bank has recently concluded a Rights Issue, which raised its capital to N15 bn and the issue was oversubscribed by about 3%. According to Deputy Managing Director Mahe Abubakar the target is to raise the capital base of N25 bn before the end of the year. This will position the bank to compete efficiently in this highly competitive sub-sector of the economy. There are some people that misunderstand the concept of non-interest banking, but Jaiz Bank is open to all Nigerians, irrespective of their religions.

Jaiz Bank appoints Usman, MD

Hassan Usman has been appointed as the new Managing Director of Jaiz Bank. The decision of the Board of Directors was reached after a rigorous selection exercise. Hassan Usman takes over from Mahe Abubakar who has acted as MD since December 2015. Mr. Usman had previously acted as Managing Director in 2013. The Bank recently obtained a National Operating License from the Central Bank of Nigeria (CBN). This will enable it to spread across all the 36 states of the Federation.

Emir Sanusi Lauds Jaiz Bank’s N700m Profit

In #Nigeria the emir of Kano, Muhammad Sanusi II, has lauded Jaiz Bank for declaring a profit of over N700 million in the four years of its operation. The bank's managing director Mahe Abubakar Mahmoud disclosed that the Bank had a total balance sheet size of N65 billion by May 31, 2016. He explained that customers’ deposit stood at N50 billion, while the shareholders fund stood at N15 billion, making the bank worth N65 billion. Abubakar said the bank was expanding its branches across the nation, with four additional branches in Kano and the neighbouring states.

#Nigeria looks to #sukuk for infrastructure funding needs

Nigeria hopes to use a proposed Sukuk issuance programme to help fund big infrastructure needs. The country plans to borrow as much as $10 bn from debt markets to help fund a budget deficit worsened by the slump in oil prices that has slashed revenues and weakened the naira. Secretary of finance Alhaji Mahmoud Isa-Dutse said the federal government is working on a sovereign sukuk with details expected within the year. In 2013, Nigeria's Osun State issued 10 bn naira ($62 mn) of sukuk, but no other sukuk transactions have followed.

#Nigeria looks to #sukuk for infrastructure funding needs

Nigeria hopes to use a proposed Sukuk issuance programme to help fund big infrastructure needs. The country plans to borrow as much as $10 bn from debt markets to help fund a budget deficit worsened by the slump in oil prices that has slashed revenues and weakened the naira. Secretary of finance Alhaji Mahmoud Isa-Dutse said the federal government is working on a sovereign sukuk with details expected within the year. In 2013, Nigeria's Osun State issued 10 bn naira ($62 mn) of sukuk, but no other sukuk transactions have followed.

Jaiz Bank secures licence to deliver #Islamicbanking

The Central Bank of Nigeria (CBN) has granted Jaiz Bank national license to operate Islamic non-interest banking in all the states of the federation. Chairman of Jaiz Bank Alhaji Umaru Abdul Mutallab said the bank intends to roll out in all the 36 states and the Federal Capital Territory (FCT) in two or three months times. Alhaji Sa’ad Abubarkar III, the Sultan of all Muslims in Nigeria, congratulated and warned that Jaiz bank must conform with all rules and regulations of Islam.

Islamic #insurance guarantees financial security

The federal government has urged Nigerians to embrace Islamic insurance as it can guarantee economic security in times of economic uncertainties. At the official launch of the book Understanding Takaful, the minister of Education, Malam Adamu Adamu, described takaful insurance as a safety net for the community. The author of the book, Malam Zubairu Sulaiman Darazo, identified the interest rates inherent in conventional financial institutions as responsible for the low level of insurance penetration in Northern Nigeria.

CBN unveils guidelines for non-interest #microfinance banks

The Central Bank of Nigeria (CBN) released guidelines on the regulation and supervision of non-interest microfinance banks (MFBs) in the country. In the document the banking sector regulator placed the NIMFBs into three categories namely Unit, State and National. A Unit NIMFB is required to have a minimum paid-up capital of N20 mn, a State NIMFB is required N100 mn, while a National NIMFB required N2 bn.

Zakat to promote equitable redistribution of wealth and foster a sense of solidarity among the Muslims

On the annual distribution of Zakat by the Elders Consultative Forum of Supreme Council for Shariah in #Nigeria Abiola Ajimobi called on the Muslims to address the effective, efficient collection and management of Zakat fund. One of the beneficiaries of the Zakat distribution, Ridwan Olalekan, who spoke on behalf of others, promised to make judicious use of the items.

SEC Approves Lotus Halal Fixed Income Fund

Following the approval of the Lotus Halal Fixed Income Fund offer by the Securities and Exchange Commission (SEC), Lotus Capital Limited held the signing ceremony in respect of the Offer on April 14, 2016. The offer has an initial subscription size of N1,000,000,000.00 consisting of 1,000,000 units at N1,000 per unit. The Fund will be launched upon receipt of final approval from SEC. The primary objective of the fund is to generate returns from investments in Shari’ah compliant fixed income securities and contracts, while ensuring capital preservation. A minimum investment of N5,000 is required.

Group To Create Jobs In Agriculture Through Interest-free Loans

A group under the auspices of Adamawa State chapter of the National Council of Muslim Youth Organisations (NACOMYO) has resolved to pursue wealth creation and provide job opportunities for members of Islamic Youth organisations through Agriculture as a business. In a communique, the association further stated that the move was in line with the policy thrust of the current Buhari Administration in collaborating with NASR of the Central Bank of Nigeria, JAIZ Bank and Standard Micro-Finance Bank. The association produced a 10 point recommendation geared towards developing a framework which will see to the Socio-economic Development of the Muslim Umma in Adamawa State.

Islamic Finance: A Game Changer for Nigeria’s Economy

“Financing Development Through Islamic Capital Market – a viable Alternative" was the theme of the a recent 2ND regional roundtable on Islamic finance which held on March 14, 2016. This was towards advancing effort by the Securities and Exchange Commission (SEC) at expanding the depth of the Nigerian Capital Market and promoting financial inclusiveness through the Capital Market. This was in line with the SEC’s strategic Ten year Master Plan on Non-Interest Capital Market. The workshop aimed at encouraging states to explore the alternative model for financing infrastructure projects through Islamic Capital Market Products such as Sukuk.

JAIZ Bank set to roll out nationwide, few months after CBN’s nod

Jaiz Bank, the pioneer Islamic bank in Nigeria, has concluded plans to go national, few months after it received an approval-in-principle from the Central Bank of Nigeria (CBN) to extend its business nationwide. Authorities at the bank said additional branches would soon open in Lagos, Ibadan, Ilorin and Port Harcourt.

JAIZ Bank set to roll out nationwide, few months after CBN’s nod

Jaiz Bank has concluded plans to go national, few months after it received an approval-in-principle from the Central Bank of Nigeria (CBN) to extend its business nationwide. Authorities at the bank said additional branches would soon open in Lagos, Ibadan, Ilorin and Port Harcourt.

JAIZ Bank Concludes Plan To Open 10 Branches By Year End

Jaiz Bank Plc has concluded plans to go national, its management has said. Speaking in Kaduna at the just concluded International Trade Fair organised by the Kaduna Chamber of Commerce, Industries, Mines and Agriculture (KADCCIMA), the Bank’s Manager in Kaduna Halilu Murtala said additional branches would soon open in Lagos, Ibadan, Ilorin and Port Harcourt. He said that this was in line with the Approval-in-Principle issued to the bank by the Central Bank of Nigeria (CBN) to go national. The bank's plan is to add at least ten more branches to the existing network of 19 branches spread across the country before the end of this year. Arrangements in fulfilment of CBN’s requirements have already been finalised, he said.

Buhari Welcomes Islamic Bank’s Plan to Hold Financing Roundtable in Abuja

President Muhammadu Buhari on Thursday in Mecca, Saudi Arabia, said he welcomed an offer by the Islamic Development Bank (IDB) to organisze a financing roundtable in Abuja to mobilise more funds for investment and development of infrastructure in Nigeria. The president of the IDB, Dr Ahmed Mohammed Ali made the offer at a meeting with Buhari who is currently on an official visit to Saudi Arabia. Ali assured Buhari that the IDB would work with its traditional partners such as the Saudi Fund, the Kuwait Fund, Arab Bank for Development in Africa and the Abu Dhabi Fund, to increase the quantum of funding available to Nigeria. Buhari welcomed the plan by the IDB to fast track the take-off of the Bilingual Education Programme, aimed at integrating the Almajiri system of education with western education in Nigeria.

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