“Interest-free banking is the key to economic growth”

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The Chairman of Nigeria’s first interest-free bank, Jaiz Bank Plc, Umaru Abdul-Mutallab, has highlighted the role of interest-free banking in economic growth.

He said so recently in Abuja when speaking at a dinner to mark the bank’s 10th anniversary.

According to him, the bank was created to stimulate growth in different sectors of the economy.

He said the process of establishing the bank had taken about 10 years, adding that the Central Bank of Nigeria’s recapitalization policy, which came in 2005, had delayed the launch of the bank’s operations.

“In 2005, the Central Bank of Nigeria introduced a reform program which created a new minimum paid-in capital for all banks, from N2 billion to N25 billion.

“As at that time, we had raised 2 billion naira and were ready to start, but after the CBN announcement, we had to go back and look for money.

“The birth of an interest-free bank is not an easy task. We have spent up to 10 years if not more making the necessary preparations before we even take off because we were determined to take off and so far we have contributed enormously to interest free banking because we believe they are essential to drive economic growth in Nigeria,” Mutallab said.

He added that the bank, which started in 2012 as a pioneering interest-free Islamic bank, had grown significantly, setting the pace for other Islamic banks.

He also said, “Our mission is to secure investments in critical sectors that will drive economic growth. Since their arrival, some Islamic banks have also been established and many more are to come.

Mutallab noted the collective efforts of shareholders, partners and investors, which enabled the bank to become a model of social impact in the banking sector.

During the anniversary, the 2022 Islamic Financial Services Industry Stability Report was launched.

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