Jaiz Bank Spends N75bn on Agriculture in 10 Years

James Emejo in Abuja

The Managing Director/Chief Executive, Jaiz Bank Plc, Mr. Hassan Usman, has disclosed that the bank had financed the agricultural sector to the tune of N75 billion in the last 10 years.

He also said that the bank had disbursed over N60 billion to more than 2,000 as well as created credit facilities for over 20,000 individuals.

Speaking at a media briefing to commemorate the bank’s 10th year in operation, Usman, also said one of the areas the non-interest financial institution had impacted significantly was the delivery of housing to Nigerians.

He said the bank had delivered over 3,000 houses to Nigerians within the past decade.

He added that non-interest banking remained open to all irrespective of their persuasion, stressing that it has become a growing world phenomenon.

He said the bank had been able to grow its balance sheet size from about N12 billion in 2003 to N300 billion in 2021 as well as grew its branches from only three branches at the beginning to currently about 45 branches spread across the country.

Usman pointed out that the practice of Islamic banking in Nigeria had “started to become a reality not just with private and businesses but also with government participating in the sector to the benefit of the nation – funding basic infrastructure especially roads through the Sukuk instrument”.

He said, “Ten years have passed like yesterday and the young institution has started to grow and we are happy that Jaiz as the pioneer has proved that the concept is workable in the Nigerian environment.

Commenting on its overall performance, he said, “The bank has made much impact at such a short lifespan. So, we believe that with all these value-added services within the last 10 years have been rewarding, we are looking with great expectations for the Next 10 years.

“And if there is any leading bank in financing the rice value chain including the new rice mills that are being created over the last four, five years, Jaiz Bank is one of the leading banks in that area.”

Asked if the increasing emergence of non-interest financial institutions does not pose a threat to its existence, Usman said, “Rather than being a threat, it is an indication of the success that we have more non-interest financial institutions coming up in the country.

“And we see them not as competitors but as collaborators. We collaborate to do business. In the financial system, you need partners. And banking is about taking from a surplus institution or individuals and being an intermediary and financing deficit.

“Now, in between, there is a treasury which you are required to maintain- which means that you are transforming liquidity and you must maintain some liquidity to ensure that there is confidence in the system.”

He said, “And you can only do this profitably if you have collaborators – if you have other banks that can take short-term funds from you and you can also take short-term funds from them in order to keep the system flowing because you don’t know when Mr. A or B who deposited money with you is coming to ask for it.”