Nigeria

Jaiz to commence disbursement of $20m SMEs #fund

The Managing Director of Jaiz Bank Hassan Usman has said the bank would soon begin the disbursement of the $20m facility for Small and Medium Enterprises (SMEs). The bank had in March signed the agreement with the Islamic Corporation for the Development of Private Sector to finance SMEs with $20m (N6.1bn). Usman said the bank would soon begin the disbursement, adding that the fund would be disbursed before the end of the year. He said the bank had commenced a five year strategic plan to provide better services to its customers. For example, the bank had increased its visibility in Lagos by opening more branches and plans to extend to other regions of the country as well.

Sigma Pensions’ Sharia funds to drive private equity investments

Sigma Pensions has commenced plans to boost investments in private equity through Sharia Funds. Chairman Mark Collier stated this in a conference hosted by the firm recently in Lagos. According to Collier, there is huge interest in Sharia Funds, and Sigma is interested in providing greater choices for its investors and contributors. Sigma CEO David Uduanu said it was vital to discuss ways to increase the penetration of pension funds in private equity. He said Sigma Pensions has started a conversation between the pension funds and the private equity industry that would lead to more investments of pension funds in private equity and more investment of private equities in Nigerian SME’s.

Lotus Halal Fixed Income #Fund Listed On NSE

Lotus Capital, a full-service, Halal investment management company listed its Lotus Halal Fixed Income Fund on the Nigerian Stock Exchange. The listing event was commemorated with a Closing Gong ceremony.

DMO lists FG’s N100bn #Sukuk on NSE

The Nigerian Stock Exchange announced the listing of the N100bn, seven-year, Federal Government Ijarah Sukuk with a rental rate of 16.47%. Director General of the Debt Management Office Ms. Patience Oniha said that the FGN Ijarah Sukuk was designed to finance critical road infrastructure across the country. She added that the proceeds would be used to further support the construction and rehabilitation of 25 roads across the six geopolitical zones of the country. According to Oscar Onyema, CEO of the Nigerian Stock Exchange, the listing has strong implications for emerging and frontier markets, which continually seek to unlock dormant pools of capital needed for economic growth and development.

#Sukuk proceeds being well utilised, says DMO DG

The proceeds of N100 billion Sukuk are being applied to infrastructure development across Nigeria. Director General of Debt Management Office (DMO) Ms. Patience Oniha said that the proceeds were designated for the financing of 25 road projects across the six geopolitical zones of the country. An inspector team visited Abuja-Abaji-Lokoja Road, Obajana-Okene Road, Suleja-Minna Road and Kaduna Eastern Bypass Road. During the inspection, the team assessed progress on the work that had been done as well as ongoing rehabilitation and construction works on the roads. Of particular significance is the fact that the funds from the Sukuk had made it possible to construct the Okene Bypass, which reduces congestion on the roads within the town.

Jaiz Bank grows profit by 161% to N894m

#Nigeria’s Jaiz Bank recorded significant growths in key performance indicators in 2017, making an average of a double of previous profit on every unit of transaction. The pre-tax profit-margin doubled from 5.5% in 2016 to 11% in 2017. Gross earnings rose by 40% from N6.18 billion in 2016 to N8.10 billion in 2017. Gross profit grew by 34% to N6.705 billion in 2017 as against N5.003 billion in 2016. Jaiz Bank had recorded another milestone on February 9, 2017 as the first non-interest financial institution to be listed on the Nigerian Stock Exchange (NSE). Jaiz Bank Managing Director Hassan Usman attributed the impressive performance of the bank to the support from the board, management and staff of the bank. He assured that Jaiz Bank would provide a new future of wide-ranging financial services to all Nigerians.

Jaiz Bank, IDB Sign $20m SMEs Financing Deal

Jaiz Bank and Islamic Corporation for the Development of Private Sector (ICD) have signed a $20 million line of agreement to finance the Small and Medium Sized Enterprises (SMEs) of Nigeria. The financing deal covers sectors such as industry, communications, technology, health, manufacturing and agriculture. Hassan Usman, Managing Director of Jaiz Bank, signed on behalf of the bank while Okan Altasil, the Regional Office Director of ICD, signed for the corporation. The ICD management said the reason for extending such financing to some Nigerian banks was because SMEs have crucial role to play in a country’s growth and development. The ICD had previously extended a total of $120 million line of financing facility for the development of SMEs in Nigeria.

Why Is Financial Inclusion in #Nigeria Lagging Compared to Its African Peers?

According to InterMedia’s Financial Inclusion Insights (FII) 2016 Annual Report, the number of adults who are considered financially included in Nigeria has not improved since 2014. Financial inclusion in Nigeria dropped slightly from 37% in 2015 to 35% in 2016, lagging behind the three other African countries of the program. In 2016, 69% of Kenyans, 54% of Tanzanians and 40% of Ugandans were financially included. The 2016 FII data found that more than half of Nigerian adults do not have access to financial services. FII data suggest that even when they have access, many Nigerians lack the basic resources and key skills that facilitate financial inclusion. In 2016, decreases in bank account ownership drove an overall drop in financial inclusion. In Nigeria, the population continues to work in the cash-based informal sector.

Jaiz Bank, others secure $50m for #SMEs financing

Jaiz Bank, Wema Bank and SunTrust Bank signed a Memorandum of Understanding (MoU) and secured $50 million from the Islamic Corporation for the Development of the Private Sector (ICD) for lending to SMEs. Under the terms of the MOU, SunTrust bank will get a financing of $10 million for lending purposes, Jaiz bank $20 million and Wema bank $20 million. Jaiz bank Managing Director Hassan Usman expressed his optimism about disbursement of the fund and said the bank has been supporting SMEs since it was created five years ago. According to Segun Oloketuyi, the Managing Director of Wema Bank, the funds will help bolster the Bank’s vision of building a sustainable retail sector by supporting micro, small and medium scale enterprises.

#Nigeria: Muslim Scholars Highlight Benefits of Islamic Financing to Economic Growth

Reputable Muslim scholars participated at Forum For Islamic Education & Welfare in Nigeria. The President of MUSWEN, Alhaji Sakariyau Babalola said the adoption of the Islamic financial system was growing in the country. Central Bank of Nigeria expert Dr. Bashir Umar said that Islamic finance was the way to finance infrastructure projects and had an integrated cooperative model which can eradicate poverty and enhance economic empowerment. He noted that financial inclusion was the key element to achieve inclusive development needed for sustainable growth in the country. Umar added that the presence of Islamic banking in the country has brought the unserved and undeserved members of the society into the formal financial sector.

Counting Milestones From N100bn #Sukuk Roads Investment Fund

In September 2017, the Federal Government of Nigeria raised N105bN to fund the construction of roads in the country. Soon after that, finance minister Mrs. Kemi Adeosun began the disbursement of the fund to commence work on the twenty five key economic roads in the six geo-political zones. The reconstruction of the outstanding sections of Benin to Ofusu to Ore to Ajebandele to Shagamu Expressway had been completed. At the other sites the construction work is on with massive presence of construction machineries and materials.

Court orders forensic #audit of Jaiz Bank statement

The Chief Judge of the Federal Capital Territory of Nigeria has ordered a forensic examination of a Jaiz Bank statement. The order was made sequel to an oral application made by Mr Sebastine T. Hon in a law suit filed against the bank and 11 others. Hon alleged that the statement of the bank was manipulated as the account did not reflect its true status. The judge ordered Jaiz Bank to make available the original or certified copy of the bank statements covering the amount available with the garnishees connecting Zamfara State Government.

Jaiz #Zakat foundation shares N5m among beneficiaries

A N5 million zakat fund was distributed by the Jaiz Zakat and Waqf Trust Foundation (JZWTF) last weekend in Lagos, Nigeria. The Chairman of the occasion, Professor Lai Olurode, described the zakat distribution by JZWTF as very important because it showcases the practicality of Islam. Olurode, who is also the Chairman of the University of Lagos Muslim Community, remarked that education was a very important key element in poverty eradication. The chairman requested that Jaiz management should recognise the University of Lagos Muslim Community as an institutional beneficiary of zakat fund. He said the community required a minimum of N2.5 million to maintain the mosque every month, excluding stationeries and salaries of workers among other needs.

Why Nigerians need to embrace #Takaful insurance

In this interview Momodou Musa Joof, CEO Jaiz Takaful Insurance, shares his experiences managing firms and enterprises offering Islamic insurance. Joof believes that Takaful establishment in Nigeria benefits the economy tremendously by creating employment, settling genuine claims and insuring insurable risks. When there is surplus or profit, Takaful insurance, especially Jaiz Takaful Insurance distributes it back to the participants who have not suffered losses. This way, it forms part of poverty alleviation and has nothing to do with Islamising Nigeria, as some people believe. Jaiz Takaful Insurance operates with two distinctive accounts: Participants’ Account and Management’s Account. 70% of contribution goes to the Participants’ Account while 30% goes to the Management’s Account. Takaful is expected to pay genuine claims faster since claims are paid from the Participants’ Account the surplus of which goes for distribution at the end of business year. Out of the amount which goes for distribution, a prescribed ratio is always paid to the needy (Zakat).

Banks embrace Islamic banking amid rising competition

The Central Bank of Nigeria released its guidelines for the operations of Non-Interest Banks (NIBs) in 2011 and
issued its first license to Jaiz Bank. At the same time, two conventional banks, Stanbic IBTC and Sterling Bank, received license to operate Islamic windows. Jaiz Bank commenced operations and remained Nigeria’s only full-fledged non-interest bank. However, Sterling Bank CEO Yemi Adeola recently revealed his plans to seek a license for a stand-alone Non-Interest Bank (NIB). He said the decision was informed by the feasibility studies conducted by the lender, judging from the potential market and financial resources of customers expected to embrace NIB. The number of banks in the country offering non-interest banking products is set to increase. SunTrust Bank Nigeria (SBN) and the Islamic Corporation for Development (ICD) signed an agreement to establish a new non-interest banking window in Nigeria.

Jaiz Bank is enjoying a fresh wave of confidence from investors

Amid a volatile environment, Jaiz Bank Nigeria is enjoying a rising wave of confidence among investors. Share price has been in an upward trajectory ever since the start of the year.

S&P sees uncertain outlook for global #Sukuk market in 2018 as #Nigeria relishes success in first attempt

The favourable outcome of Nigeria’s first Sukuk issuance suggests that it is as a veritable financing option for the country. However, global rating agency Standard & Poor’s says its outlook for the market remains uncertain in 2018. According to S&P analysts, total issuance will likely decline to $70 billion-$80 billion in 2018 from the over $97 billion recorded in 2017. The analysts noted three main reasons for their expectations including a likely tightening in global liquidity, mounting geopolitical risks and slow progress on the standardization of Islamic products. They expect that the cost of funding for issuers will rise and that liquidity from developed markets channeled to the sukuk market will reduce. A major concern is the slow pace of standardization of Islamic finance products.

#Sukuk: An alternative economic model in #Nigeria

The growth in Sukuk’s popularity can be traced back to the global financial crisis in 2008. Since then, several sovereign and sub-sovereign bonds were issued under Islamic principles. In Africa it is Kenya that has commited to positioning itself as a regional Islamic finance hub. Finance Minister Henry Rotich outlined the steps as part of the country’s 2017/2018 budget aiming to level the playing field between Islamic and interest-based transactions. The primary objective is to prepare the groundwork for a sovereign sukuk but also to attract corporate sukuk from the region. Nigeria’s seven-year N100bn Sukuk bond offers an avenue for a competitive alternative to the conventional banking system and a path towards sustainable economic recovery.

#Kano Gets First Islamic #Insurance Services

Islamic insurance services were formally launched yesterday in Kano, Nigeria. The launching ceremony of Jaiz Takaful Insurance was held at the premises of the palace of the Emir of Kano. The managing director of Jaiz Takaful Insurance, Mahmud Moussa Joof disclosed that the sector has currently recorded 25 to 35% global growth. He added that Takaful insurance was open to everybody as against contrary insinuations from certain quarters. At the ceremony, the Emir of Kano, Muhammad Sunusi II lamented over the faulty payment system by insurance service providers in Nigeria. The Emir urged operators of the Islamic Insurance business to be honest to Kano people, while urging Kano people to form cooperative groups to access the Islamic insurance services, affirming that, subscribing to insurance services is permissible in Islam.

#Nigeria: How #Islamic #Finance Can Stimulate #Economic #Recovery'

Regarding its economic situation and the quest for a solution in Nigeria, Islamic Finance is believed to be able to redeem it because of the ethical and moral values within the Islamic banking system.
Alhaji Sulaimon Yusuf, who spoke at the Muslim Association of Nigeria 34th Triennial National Conference in Lagos, said that Islamic finance is playing an important role in promoting socially desirable investments, economic empowerment, employment opportunities and resuscitation of real sector of economy. Further he said: "We have confidence in the economic packages and policies of the present administration and feel that a lot more needs to be done to alleviate the suffering of the masses"

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