TAJBank Limited, Nigeria’s leading non-interest bank, is set to launch Nigeria’s first private sector Sukuk offering valued at N100 billion.
According to a statement by the bank’s Managing Director, Mr. Hamid Joda, the Sukuk offering is currently undergoing regulatory approvals.
Joda said that the offering would mark a historic shift from government-dominated Sukuk offerings to a fully private sector-oriented offering in the Nigerian debt markets.
“TAJBank is launching the instrument under a Mudaraba structure that will afford the non-interest lender opportunity to grow its capital base.
“By so doing, it will be positioned on a strong pedestal to finance large and long-term projects in Nigeria, while unlocking investment opportunities in Africa’s largest economy,” he said.
Joda said that the Sukuk would be offered in tranches of N10 billion each as soon as regulatory approvals are secured.
“TAJBank’s Sukuk offer being the first private sector Sukuk offer in Nigeria would open the door for several Sukuk offers by other private sector entities.
“It will, thus, stimulate investments in critical sectors of the economy leading to national development.
“Our aim is to raise the needed funds that would be invested in targeted high-impact sectors that spur job creation and enhance the standard of living of Nigerians”, Joda said.
Also, TAJBANK’s Executive Director, Mr. Sherif Idi, said that there were many economic activities or projects that well-meaning Nigerians and companies are unable to fund.
Idi said that the Sukuk was a perfect way of aiding to finance those projects.
“The use of the Sukuk to fund those projects means that investors were incentivised to help the economy develop by creating and producing rather than consuming only,” he said.
The News Agency of Nigeria (NAN) reports that TAJBank started its operations through its Head Office in Abuja and a branch in Kano in 2020.
Over the last two years, the Bank has accomplished several milestones, including expanding its branch network to 22 within its franchise area.
It recently reported a 433 per cent growth in profits for the 2021 financial year and significant growth in gross revenue, balance sheet and other performance assessment indicators