TAJBank

TAJBank Limited, Nigeria’s fast-growing non-interest bank, has set a new record in the Nigerian banking system with the payment of dividends to its shareholders within three years of its operations.

According to a statement by Isiaku Gwamna, the Chaiman of TAJBank’s board, in spite of the inclement operating environment, the board and management of the bank were able to sustain TAJBank on the path of sustainable growth.

TAJBank had earlier made history as the first corporate entity in Nigeria’s history to list Sukuk Bond on the Nigerian Exchange Limited (NGX) after the successful issuance.

Gwamna said that the global economic whirlwinds in the past two years, as well as the macroeconomic developments, especially the surging inflation rate, had impacted negatively on businesses.

“On behalf of the Board, I am pleased to inform our shareholders that we have recommended a scrip dividend payment of one share for every 10 shares, subject to shareholders’ approval.

“We remain committed to promoting business expansion and success while making sure that a sizeable amount of our profits is set aside for you,” he said.

The bank’s Managing Director, Mr Hamid Joda, described 2022 as a significant milestone in the journey of TAJBank, in spite of the headwinds that characterised the operating environment.

Joda said that the management was able to deliver on key strategic goals through relentless execution, backed by a positive culture and delivery on high-impact projects.

He said that TAJBank recorded remarkable growth across key indices in 2022, as its balance sheet grew by over 93 per cent from N110 billion recorded in 2021 to N212 billion.

He said that its Profit Before Tax (PBT) also increased from N1.6 billion in 2021 to N5.081 billion in 2022.

“The bank’s earnings per share grew by 138 per cent to N31.27 kobo in 2022 compared to N13.11 kobo recorded in 2021.

“In our relentless effort to promote non-interest products and modes of banking nationwide, the board and management of TAJBank have set key objectives for the year 2023 and beyond.

“These initiatives include, to promote financial inclusion by leveraging various channels and touchpoints, especially our electronic platforms.

“This is with the aim of reaching out to the unbanked populace; and to be recognised as the market leader in the non-interest banking industry in Nigeria.

“We also plan to open 110 branches/business offices across state capitals/major commercial centers before 2024,” he said.

He said that the bank also planned to offer non-interest banking products and services to underserved markets; to grow its agency network to 100,000 active agents by 2025 thereby reducing the financial exclusion rate.

“We also plan to grow our customer base to at least four million by 2027; and to achieve a minimum customer satisfaction score of 85 per cent ”, he said.

TAJBank Ltd., Nigeria’s foremost non-interest bank, on Tuesday listed its Sukuk Bond on the floor of the Nigerian Exchange Ltd., (NGX).

The bank listed N10 billion Mudarabah Sukuk issuance after it successfully raised over N11.4 billion under its N100 billion Sukuk Issuance Programme.

The Issuance received interest from both retail and institutional investors, resulting in a subscription of N113.6 billion.

Its Chairman, TAJBank’s board, Alhaji Tanko Gwamna, said that the oversubscription of the Sukuk issuance demonstrated that investment culture in Nigeria was still vibrant.

He also said that the oversubscription of the bond showed a sustained confidence in Nigeria’s path to economic recovery and stability.

Gwamna said that the listing was the first of its kind on the trading floor and with non-interest bearing.

He said that the capital market needed the listing to enhance liquidity and further grow Nigeria’s economy.

He disclosed that the bank was considering investing in the manufacturing and agriculture sectors with Sukuk proceeds.

“Manufacturing sector is the only sector that can take most of the youth out of the street and keep them engaged. Also, we are funding agriculture production and its value chain from start to finish.

“These two sectors are where we wanted to fund the Sukuk issuance. The listing on the exchange is for investors to trade in the Sukuk and diversify their investment,” he said.

According to him, TAJBank is setting the trend and a lot of corporates will come along.

“We are making more offerings because the market is in need of corporate Sukuk. It was a transparent exercise and people can trade with our Sukuk and it will offer more liquidity for economic growth.

“Soon, we will be back in the capital market to raise more funds,” he said.

Also speaking, TAJBank’s Managing Director, Mr Hamid Joda said the aim of the Sukuk listing was to give Nigerian investors alternative means of investment.

According to Joda, millions of investors have been yearning for non-interest or Islamic instrument and the bank believes it is an opportunity for them it to invest in such an instrument.

“The funds raised will be deployed into sectors that create jobs in Nigeria’s economy and in that way, it will have high-impact opportunities for millions of Nigerians.

“I believe with this move, we have inspired many other corporates in the financial space to come on board and issue Sukuk for greater development of our dear country,” he said.

The Divisional Head, Capital Markets, NGX, Mr Jude Chiemeka. commended the efforts of TajBank’s leadership and others parties to the issue.

“NGX will continue to support issuers by providing a platform of choice for capital raising and linking them with a diverse pool of investors.

“The Exchange is also committed to the development of Islamic financing in the Nigerian capital market and continues to implement initiatives to deepen its offerings,” he said.

Sukuk, commonly referred to as Islamic Bonds.  is a non-interest-bearing bond.

It has helped government diversify its sources of funding while offering ethical investors an opportunity to invest in government-issued securities.

The instrument has also served as a reference for pricing Sukuk issued by other bodies, especially the private sector.

TAJBank Limited, Nigeria’s fast-growing non-interest bank, has opened a new branch in Apapa, Lagos.

TAJBank’s Managing Director, Mr Hamid Joda made this known in a statement on Monday.

According to Joda, opening of the new branch is in furtherance of the bank’s current drive to provide seamless financial transactions and advisory services for its growing customer-base.

TAJBank secured its national banking license from the Central Bank of Nigeria (CBN) in July, 2022.

Joda said that it was part of the board and management’s initiatives to open new branches within the next few months across the six geo-political zones in the country.

He said that Apapa was targeted for the commencement of the bank’s branch network expansion in the South West because of its strategic position in the nation’s business operations and the need to offer customers real-time, technology-powered world class services.

“We are excited to begin the deepening of our non-interest and customer-focused products and services in Apapa, Lagos as we commence the expansion of our services across the country.

“This is a mega branch based on the investments in technology and solutions, and the quality of human resource we are putting in place here.

“We intend to put same in other branches we are opening very soon because we intend to offer what other banks are not offering in terms of value-addition to our customers.

“With this move, we want to assure Nigerians that TAJBank’s only interest is our customers, and we shall continue to offer them products and services that surpass their expectations,” he said.

The bank’s Executive Director, Mr Sherif Idi, recalled that the sterling performance of TAJBank was recognised in Nigeria and internationally.

“The awards from Business Day and Leadership newspapers, and other global rating agencies to TAJBank in recognition of our world-class operational standards and service quality attest to this, ” he said.

The Managing Director of IAL Nigeria Limited, Alhaji Ismail Adetola Lawal, commended the Board and management of TAJBank for opening the Apapa branch for the benefit of business owners and the Nigerian economy.

“ I want to assure Nigerians that TAJBank will not disappoint them but surpass their expectations,” he said.