Why We Pioneered Interest Free Banking – Chairman of Jaiz Bank

Chairman of Nigeria’s first interest-free bank, Jaiz Bank Plc, Umaru Abdul Mutallab, said the idea of ​​establishing the bank was aimed at stimulating growth in different sectors of the economy.

He said so yesterday in Abuja during his address at a dinner to mark the bank’s 10th anniversary.

Mutallab told how the bank started in 2012 as a pioneer in interest-free Islamic banking and grew in 10 years to become an interest-free pioneer.

He said, “The main pillar in the establishment of Jaiz Bank was the approval of the Managing Director of the Securities and Exchange Commission (SEC) to start operations and our mission is to ensure investments in critical sectors that will drive the economic growth. Since their arrival, some Islamic banks have also been established and many more are to come.

Speaking further, the President noted that the bank would have started earlier if not for the Central Bank recapitalization policy that took place in 2005.

“In 2005, the Central Bank of Nigeria introduced a reform program which created a new minimum paid-in capital for all banks, from two billion naira to 25 billion naira.

“At that time, we had raised 2 billion naira and were ready to start, but after the CBN announcement, we had to go back and look for money

“The birth of an interest-free bank is no small feat, we have spent up to 10 years making the necessary preparations before we even took off because we were determined to take off and so far we have enormously contributed to the interest free bank because we think it is crucial in driving economic growth in Nigeria,” he explained.

He added that the collective efforts of shareholders, partners and investors have enabled the bank to be what it is today, adding that it is gradually becoming a model of social impact in the banking sector.

By Philip S. Clement and Chris Agabi

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