The pioneer of non-interest credit facility in Nigeria Jaiz Bank says it has got $25million from Islamic Corporation for the Development of the Private Sector (ICD).
ICD is the private sector arm of the Islamic Development Bank (IsDB), a Saudi Arabia-based multilateral development finance institution that is focused on Islamic finance.
If converted to naira using the CBN official exchange rate (N409.4) at the time of publication, the $25 million translates to N10,235,000,000
The funds, according to the officials of the first non-interest bank in Nigeria, are a Sharia-compliant line of financing (LOF) designed to support small and medium scale enterprises in Nigeria.
The $25m LOF will also be extended to businesses that were adversely affected by the COVID-19 outbreak.
Out of the funds, $10m or N4,094,000,000 has been allocated as COVID-19 support package to help the private sector affected by the pandemic by leveraging on the expertise of the banking system of its member countries.
Reacting, the Chief Executive Officer of ICD Ayman Sejiny said, “We have no doubt that this line of financing facility will provide much-needed support to private-sector businesses including those which have been affected by the pandemic.”
The Managing Director of the Nigeria-based bank Hassan Usman said his bank is excited about the partnership with ICD.
According to him, the partnership began in 2018 with a USD 20m Line of Finance to support SME’s in Nigeria.
The successful utilisation of the previous funds could be attributed to another batch of financing.
On how the 2018 funds were deployed, he said:
“The facility was fully repaid earlier this year and has helped in generating over 791 direct jobs and put the bank among the major banks in repatriating non-oil export proceeds for the country.”
The Islamic Development Bank has 57 shareholding member states. Saudi Arabia has the largest share.
Jaiz which has at least eight non-interest loan products grants application to Nigerians irrespective of religious affiliation provided an applicant meets the eligibility requirements.
The bank was founded in 2003 by a seasoned banker Alhaji Umar Mutallab, a former Chairman of First Bank of Nigeria.