Jaiz Bank’s N800bn Financing Portfolio Targets Exports, MSMEs — MD
The Managing Director of Jaiz Bank, Dr Haruna Musa says the bank’s financing portfolio is worth about N800 billion targeting trade.
Musa said this at breakfast session at the ongoing Nigeria Economic Summit 32 (NES32) in Abuja on Tuesday.
He said that more than N100 billion was supporting trade involving cocoa, cashew and other non-oil export-related products.
Musa urged the non-interest banks to prioritise financing exports, micro, small and medium-sized enterprises (MSMEs) and other productive sectors to boost growth and create jobs.
He said that financial institutions must understand businesses and structure financing arrangements to suit their operations and cash flows.
“In the non-interest banking model, we have various contracts, and these contracts must align with the business model and cash flows,” Musa said.
He urged entrepreneurs to understand available financing options and clearly communicate their business needs to enable banks to determine suitable arrangements.
According to him, exports are a priority because of their potential to generate employment, earn foreign exchange and support economic development.
Musa also called for increased financing for MSMEs and manufacturing to expand local production and strengthen the economy.
On renewable energy, he said that solar financing should cover the entire value chain, rather than focusing solely on installing solar systems.
The managing director said that such financing could improve electricity access for essential facilities, including hospitals.
Musa also advocated financing across the agricultural value chain, covering farm inputs, processing facilities and distribution.
He called for greater access to non-interest financial services for women, young people and rural communities, particularly those underserved by conventional banking networks.
According to him, digital platforms and partnerships with financial technology companies can help banks reach more customers and improve service delivery.
Musa disclosed that he had gone almost a year without visiting a bank branch because he conducted transactions through his mobile phone.
He said that mobile banking and alternative delivery channels could reduce dependence on physical branches while improving customer experience.
The managing director also said that non-interest banking could support businesses seeking to enter export markets or establish factories, provided financing structures matched their needs.
Also speaking, Prof AbdulRazzaq Alaro, a professor of Islamic Law at the University of Ilorin, said that non-interest finance could promote job creation and shared prosperity.
Alaro said that the system was based on risk-sharing, asset-backing and transactions linked to real economic activities.
“When you channel money to productive economic activities, you automatically create jobs. You automatically get economic growth, and that will ultimately result in shared prosperity for all,” he said.
Alaro said that Nigeria’s large population, young workforce and abundant agricultural and petroleum resources offered significant opportunities for expanding non-interest finance.
He identified MSMEs as a major sector where the financing model could support production, business expansion and employment.
Alaro said that different Islamic finance contracts could address specific economic needs, including agriculture, construction and infrastructure.
According to him, the Salam contract can support agricultural activities, while Istisna can finance construction, infrastructure and projects involving the production or delivery of specified assets.
Alaro also highlighted Nigeria’s National Halal Economy Strategy, which seeks to position the country to benefit from the global halal market estimated at about eight trillion dollars.
He said that the country was targeting a contribution of about 12 billion dollars to its Gross Domestic Product (GDP) through the strategy in the coming years.
Alaro said that non-interest banks and other Islamic finance institutions could tap opportunities in the halal economy by financing businesses serving the market.
He added that channelling more funds into productive enterprises could expand businesses, create jobs and improve Nigerians’ welfare.
Alaro said that the halal economy offered opportunities for non-interest financial institutions to apply their expertise in Islamic finance and support broader economic development.
