Jaiz Bank, ICD sign $20m agreement to boost capital operation

Nigeria’s first non-interest Bank, Jaiz Bank has signed a $20 million Memorandum of Understanding (MoU) with the Islamic Corporation for the Development of the Private Sector (ICD)to boost its capital operation in Nigeria.

The agreement signing ceremony took place at the 2024 Islamic Development Bank (IsDB) annual meetings in Saudi Arabia.

The Managing Director/Chief Executive of Jaiz  Bank, Haruna Musa who signed the agreement on behalf of the Bank said the agreement is targeted at boosting its capital base.

Recall that a similar framework agreement worth $1 billion was signed by the Bank,  the Nigerian government and the International Trade Financing Corporation (ITFC) during  the IsDB’s 2023 annual meetings.

According to the Bank’s MD “The $20 million Tier 1 capital injection into Jaiz Bank means that we will be providing funds in terms of equity to substantially support our operations in Nigeria

“After the CBN’s announcement for recapitalization, Jaiz Bank qualified capital base is about N18.7 billion and the requirements by the CBN is N20 billion for our categorization which is the non-interest Banks, therefore we will be having additional N10.4 billion which will now propel Jaiz Bank’s capital base to about N29 billion, therefore exceeding the capital requirement by the CBN,” Musa explained