Focused on growing its capital base as a key player in Nigeria’s financial sector, TAJBank Limited, is set to launch the first private sector Sukuk offering under a N100 billion programme in the country.
Primed for a public launch soon, the Sukuk offering, currently undergoing regulatory approvals, will mark a historic shift from government-dominated Sukuk offerings to a fully private sector-oriented package in the Nigerian debt markets.
The instrument, to be launched under a Mudaraba structure, will afford the non-interest lender an opportunity to grow its capital base and by so doing, position it on a strong pedestal to finance large and long-term projects in Nigeria while unlocking investment opportunities in Africa’s largest economy.
According to the Bank’s board, the Sukuk will be offered in tranches of N10 billion each as soon as regulatory approvals are secured.
Speaking in an interactive session with journalists on the corporate Sukuk offering, the Bank’s Managing Director and Chief Executive Officer, Mr Hamid Joda, explained that; “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 thereby stimulating 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.”
According to him; “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”
Also speaking at the session, TAJBank’s Executive Director, Mr. Sherif Idi, said; “There are many economic activities or projects that well-meaning Nigerians and companies are unable to fund. The Sukuk is a perfect way of aiding to finance these projects.”
He further said using the Sukuk to fund these projects means investors are incentivized to help the economy develop by creating and producing rather than consuming only.”
Since commencing operations from its Head Office in Abuja and a branch in Kano, TAJBank has over the last two years accomplished several milestones, including expanding its branch network to 22 within its franchise area.
Besides breaking even within eight months of operations, TAJBank has remarkably grown its shareholders’ fund and returns on their investment in the last 12 months as Nigeria’s leading non-interest financial institution.
It recently reported a 433 percent growth in Profit Before Tax (PBT) for the 2021 financial year with significant growth in gross revenue, balance sheet and other performance assessment indicators.
