Toba Owojaiye reporting
Abuja, Nigeria
TAJBank, Nigeria’s leading non-interest financial institution, is set to raise N20 billion through a Mudarabah Sukuk issuance as part of its broader N100 billion Sukuk programme. The move aims to bolster the bank’s Additional Tier 1 capital and fuel its ongoing business expansion, marking another milestone in its pioneering role in Islamic finance within the country.
Truth Live News learnt that the issuance comes two years after TAJBank successfully launched the first-ever N10 billion Sukuk Bond on the Nigerian Exchange (NGX) in 2023, setting a precedent for non-interest financial instruments in Nigeria’s capital market. The Mudarabah Sukuk, structured to provide a stable and ethical investment option, offers investors an opportunity to partake in the bank’s profit-sharing ventures while ensuring compliance with Islamic banking principles.
Speaking during a virtual engagement with journalists, TAJBank’s Founder and CEO, Mr. Hamid Joda, emphasized the bank’s commitment to financial inclusion and ethical investment opportunities.
> “We are excited to bring this Mudarabah Sukuk to the market, offering a compelling investment opportunity that aligns with ethical financial principles. This listing on the NGX will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model,” Joda stated.
The bank disclosed that the Sukuk issuance is undergoing its final regulatory assessment and approval processes. It will be open to both individual and corporate investors seeking a competitive return of 20.5% per annum—a rate that positions it as an attractive alternative to conventional investment instruments.
With Nigeria’s economy undergoing significant shifts and investors increasingly seeking ethical and sustainable financial products, TAJBank’s initiative aligns with the country’s growing demand for non-interest banking solutions. Analysts see the move as a strategic step towards deepening Islamic finance penetration in Nigeria, a sector that has seen increased adoption in recent years.
TAJBank’s planned Sukuk issuance comes at a time when Nigeria is witnessing a steady rise in Islamic banking, with institutions like Jaiz Bank and Lotus Capital also expanding their footprints. The federal government has previously issued Sukuk bonds to finance infrastructure projects, further legitimizing the instrument as a viable alternative to conventional debt financing.
With the success of its initial Sukuk issuance in 2023, TAJBank has demonstrated the potential of Islamic financial instruments in deepening Nigeria’s capital markets. The bank’s decision to scale up its offering signals confidence in the investment community’s growing appetite for non-interest financial products.
TAJBank has urged potential investors to consult financial advisors or visit its website (www.tajbank.com) for detailed information on the Sukuk issuance and listing process. Industry experts believe that if the current issuance performs well, the bank could reach its N100 billion Sukuk target sooner than expected.
Market watchers note that TAJBank’s proactive approach to capital raising through Shariah-compliant instruments is a sign of the bank’s broader strategy to strengthen its financial position and expand its services across Nigeria. Given the rising interest in alternative finance, the bank’s Sukuk initiative is expected to attract significant attention from local and international investors.
As Nigeria continues to embrace Islamic finance as part of its economic diversification strategy, TAJBank’s N20 billion Sukuk issuance is poised to serve as a benchmark for future Shariah-compliant investment instruments in the country.
TAJBank’s move to raise N20 billion through its latest Mudarabah Sukuk underscores the growing appeal of ethical investment instruments in Nigeria. With an attractive return rate and a robust profit-sharing model, the offering is set to draw significant investor interest while reinforcing the bank’s position as a key player in Nigeria’s Islamic finance landscape.
If successfully executed, this initiative will not only enhance TAJBank’s financial standing but also contribute to the deepening of Nigeria’s capital markets, offering investors a viable alternative to traditional financial instruments.