Jaiz Bank lists on Nigerian Stock Exchange

Jaiz Bank, Nigeria's first non-interest commercial bank, made history today by listing 29.5 billion shares on the Nigerian Stock Exchange at a value of 37 billion naira. The Managing Director of Jaiz Bank, Hassan Usman, joined CNBC Africa to discuss this monumental achievement. Usman revealed that the decision to list was driven by a long-standing ambition of the bank. Having obtained a non-interest banking license in 2012, Jaiz Bank had promised its 27,000 shareholders that once the bank was running successfully for five years, they would list on the stock exchange to create liquidity and enhance the company's value. The listing was done by way of an introduction, meaning that no additional capital was immediately raised. Usman emphasized that while the bank currently had a good capital adequacy ratio, transparency and the need to fulfill promises made to shareholders were key drivers behind the decision to list. By joining the Nigerian Stock Exchange, Jaiz Bank aims to strengthen its organizational capacity, adhere to best practices, enhance transparency, and improve corporate governance. Moreover, Jaiz Bank is set to increase its share capital base from 15 billion naira to 25 billion naira, a move aligned with the bank's strategic expansion plans. Since its inception with three branches, Jaiz Bank has grown to operate 27 branches across Nigeria and is poised to open three more branches in the near future. The bank's vision extends beyond Nigeria, aspiring to become the dominant non-interest Islamic bank in the sub-region. Usman shed light on the distinctive operating model of Jaiz Bank, emphasizing financial intermediation through trading and partnerships rather than traditional lending practices. Unlike conventional banks, Jaiz Bank does not engage in interest-based lending, opting instead to provide goods and services through trade partnerships with customers. This model, rooted in transparency and real economic activity, has garnered interest and support from a global investor base and ethical stakeholders. During the interview, Usman underscored the importance of financial literacy and customer education, especially in light of the bank's recent listing. With an increased focus on expanding customer understanding, Jaiz Bank seeks to empower its clientele with knowledge of non-interest banking principles and investment opportunities. Through initiatives like interactive sessions, media engagements, and targeted education programs, Jaiz Bank is committed to demystifying Islamic banking concepts and attracting a wider customer base. As Jaiz Bank marks a significant milestone with its listing on the Nigerian Stock Exchange, the banking institution remains dedicated to upholding its ethical standards, promoting financial inclusion, and driving economic growth through innovative Islamic banking practices.