Umaru Abdul-Mutallab, chairman of Nigeria’s first non-interest bank, Jaiz Bank Plc, has emphasized the importance of non-interest banking in driving economic growth.
He said this on Monday in Abuja during his speech at a banquet to commemorate the bank’s tenth anniversary.
He claims that the bank was founded to spur growth in many sectors of the economy.
He stated that the bank’s establishment took roughly ten years, and that the Central Bank of Nigeria’s recapitalisation policy, which occurred in 2005, delayed the bank’s activities.
“In 2005, the Central Bank of Nigeria introduced a programme of reforms which created a new minimum paid up capital for all banks, from N2bn naira to N25bn.
“As at that time, we had raised N2bn and ready to start but after the CBN announcement, we had to go back again and look for money.
“The birth of a non-interest bank is not easy feat, we have spent up to 10 years, if not more, doing necessary preparations before even taking off because we were determined to take off and so far, we have contributed immensely to non-interest banking because we believe it is crucial in driving economic growth in Nigeria,” Mutallab said.
He went on to say that the bank, which began in 2012 as the first Islamic non-interest bank, had developed tremendously, setting the standard for other Islamic banks.
He also said, “Our mission is to ensure investments in critical sectors that will drive economic growth. Since coming onboard, some Islamic banks have also been established and many more are coming.”
Mutallab stated that the bank’s collaborative efforts of owners, partners, and investors had enabled it to become a model for social impact in the banking sector.
The Islamic Financial Services Industry Stability Report 2022 was also released during the anniversary.
