Islamic Banks are also called non-interest Bank. They operates based on sharia law which states that interest (riba) must not be charged on loan. As such, money is considered as medium of exchange not assets. In this article, you’ll find list of Islamic Banks in Nigeria.
Categories of Islamic Bank in Nigeria
There are two categories of Islamic or non-interest Bank in Nigeria.
- National Islamic Bank: This category of Islamic Bank is permitted to operate nationwide with capital base of N10 Billion.
- Regional Bank: This Bank is permitted to operate in minimum of six (6) states with maximum of twelve (12) states in not more than two(2) geopolitical zones. They are required to have capital base of N5 Billion.
Types of Islamic finance
As stated earlier, the mode of operations is based on compliance with sharia law. Central Bank of Nigeria is responsible for regulations and supervision of Islamic or non-interest banks in Nigeria.
Basically, there are two types of Islamic finance.
- Profit and Loss Sharing: This type of Islamic finance use equity principle where Banks shared the risk, profit and loss with the owner of the business.
- Purchase and hire of goods and services: This is a type of financing whereby the Bank purchase goods and services, hired it out with expectations of fixed returns on goods or services rendered.
The most often asked question is that: “does Islamic Banks collect deposits and do they give interest like conventional banks”?.
Islamic Banks does not give interest instead they pay you back percentage of profit accrued from their businesses.
List of Islamic Banks in Nigeria
There are two(2) Islamic Banks in Nigeria.
1. Jaiz Bank PLC
The bank is commonly known as Jaiz Bank.
The Bank is first Islamic bank in Nigeria. As public limited company, the Bank is proud to have over 26,000 shareholders. They collects deposits and also invest on projects according to Sharia Law.
They’ve numerous products for businesses, salary earners, kids, small and medium enterprises and big films.
The Bank is licensed national non-interest Bank.
Head Office Address: 73, Ralph Shodeinde Street, Kano House, Central Business Area, Abuja.
Phone: +234 708 063 5500
2. Taj Bank
The Bank was licensed to operate as non-interest Bank in 2019.
Taj Bank is second Islamic Bank licensed by CBN.
The bank recently opened her second branch at Kano state.
They offer products under sharia law ranging from partnership, deposits, projects financing etc.
The Bank is licensed regional non-interest Bank.
Head office Address: Plot 72 Ahmed Bello Way, Central Business District, Abuja, Nigeria.
Phone number: +2348030669901
Slogan: ‘You’re our only interest’
Other Non-interest financial institutions in Nigeria
1. Sterling Bank Alternative Finance
This is a subsidiary under sterling bank that provides alternative non-interest financing. So, if your faith don’t support conventional sterling bank.
The Bank started operations in 2014. They’ve several products such as Mudarabah, partnership, domiciary accounts, current accounts etc.
Head office Address: 20 Marina Road, Lagos Island, Lagos, Nigeria.
Thank you for reading.