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Jaiz Bank

Jaiz Bank is Nigeria’s only CBN licensed non-interest institution offering Islamic compliant loans for multiple purposes in Nigeria.

Jaiz bank takes asset risk by acquiring the asset before renting, selling or sharing in its returns. The bank is compensated through profit on trade of goods or rent charged for asset use rather than charging interest on the loan. Non-interest banks must first take ownership of the asset and then either rent the asset or sell it on to the customer (on a cost plus basis with deferred payment).

The general principles of Islamic finance include the prohibition of usury or interest (riba), excessive uncertainty (gharar) and gambling (maysir), as well as risk and profit sharing between involved partners. Additionally, assets and investments can only come from, and be made in, Shariah compliant activities, and transactions must be backed by tangible, identifiable underlying assets.



  • Wadiah (Safekeeping) – In Wadiah, a bank is deemed as a keeper and trustee of funds. This is similar to the normal savings account. A person deposits funds in the bank and the bank guarantees refund of the entire amount of the deposit, or any part of the outstanding amount, when the depositor demands it. The depositor, at the bank’s discretion, may be rewarded with a ‘hibah’ (gift) as a form of appreciation for the use of funds by the bank.
  • Murabaha (Cost-plus financing), a profit and loss-sharing system. This is a contract which involves purchase of goods by a bank, which sells them to its client at an agreed mark-up. Repayment is usually in installments.
  • Musharaka (Joint Venture/Equity financing), a profit-sharing joint venture. Here, a bank joins another entity to set up a joint venture, both parties participating in various aspects of the project in varying degrees. Profits and losses are shared in a pre-arranged fashion.
  • Mudaraba (Trust financing), a profit-sharing agreement. The bank contributes the finance, while the client provides the expertise, management and labour. Profits are shared in a pre-arranged manner. However, when a loss occurs, it is completely borne by the bank.
  • Istisna: supplying industrial products to client’s orders. This is a contract for the acquisition of manufactured goods, by specification or order, where the price is paid gradually in accordance with the progress of the job. The technique can be used for real estate development.
  • Wakalah (Agency). This occurs when a person appoints a representative to undertake transactions on his/their behalf, similar to a power of attorney.
  • Ijara (Lease/Hire purchase), which is a globally recognized mode of leasing. Here, the bank buys an item for the client and leases/hires it to him at an agreed amount and period. At the end, the client automatically becomes the owner.
  • Sukuk or Muqarada(Islamicbonds/ financial certificates). These are Islamic Bonds floated to finance a specific project. Investors take a share of the profits of the project being financed but also share in the risk of unexpectedly low profits or even losses. They have no say in the management of the project.


  • No interest is charged
  • Flexible loan conditions


  • Profit from venture is shared with the bank
  • Significant documentation is required


  • Duly completed Loan application form
  • Duly completed personal guarantee form
  • Board resolution for the Loan (for companies)
  • One passport photograph of each signatory.
  • Identification document for each signatory e.g. International Passport, National ID Card, National Drivers Licence e.t.c. Originals will be required for sighting.
  • Copy of utility bill issued within the last three months. Originals will be required for sighting.
  • Two reference forms duly completed by an individual or corporate body maintaining a current account with a bank in Nigeria. (Applicable to current account only)