Jaiz Bank To Raise N8bn For Licence

Shareholders of Jaiz Bank

Plc have given approval to the proposal of the board to raise fresh N8 billion for a national banking licence.

Jaiz is the first bank to fully commence Islamic banking operation, following the adoption of the non-interest banking model by the Central Bank of Nigeria.

The non-interest banking model has generated a lot of controversy as many Nigerians see it as an attempt to turn Nigeria into an Islamic country.

The approval, which was given at the bank’s 9th Annual General Meeting in Abuja, would enable the board to raise the fund through two separate private placements.

But the Chairman of the bank, Dr. Umaru Mutallab, who moved the motion for the amount to be raised, told the shareholders that one of the placements would be offered at N1.00 to the Islamic Development Bank and all other investors, whose monies had been kept as deposit for shares.

He added that the other placement would go for N1.15 to prospective investors sourced both locally and internationally, upon such terms and conditions to be determined at the discretion of the directors.

He said despite the controversy that surrounded the non-interest banking model, more Nigerians had continued to indicate interest in equity participation in the bank.

He said, “We commend the CBN for coming up with a regulatory framework for non-interest banking in Nigeria, and for issuing the company a banking licence.”