What Are Islamic Banks? List Of Islamic Banks In Nigeria: Their Origin, Growth And Details

Islamic Banks are one of the fast-growing set of banks in Nigeria. Whenever you need money for emergency funds, you can follow the instructions provided by the Islamic Banks and then your loan will be provided for you. Many times customers prefer Islamic banks because they follow the Sharia principles found in the holy book. Also, they do not need any interest in the amount of the loan in the event of payback.

What are Islamic Banks?

Islamic Banks are a type of banking that is based on the law of Islamic law. This means that Islamic Banks do not invest in or give out money for activities that are viewed to be Haram. For example, Islamic banks do not invest in or give out money to organizations that produce products such as pig meat, alcoholic beverages, or betting.

Islamic Banks are profit-oriented organizations. This means that the banks share the profit of any investment. They also share losses equally. The main difference between Islamic Banks and normal commercial banks is that Islamic Banks do not pay and receive interest. This is forbidden in Shariah.
There are different ways in which Islamic Banks can avoid paying and receiving interest. They can use a system called Murabaha. This is a kind of cost-plus financing. In Murabaha, the financial institution purchases an asset on behalf of the clients and then sells it to the client at a profit. The profit is the only charge that the client pays, this is not considered to be interest.

Islamic banks are growing in the industry. As of today, over 60 banks are operating around the world. The Islamic bank in Nigeria is also growing at an increasing speed.

List of Islamic Banks in Nigeria

The first Islamic bank in the country was created in the year 2003. This is over 20 years ago. Jaiz Bank was created by a group of Islamic scholars and businessmen in Nigeria. It was created out of a need to create Islamic banking in Nigeria.
Since the creation of Jaiz Bank in Nigeria, several other institutions have also been created in Nigeria. These banks include Unity Bank, Sterling Bank, etc. The Islamic bank is expected to continue growing for several years. This is due to several factors, including the increase in the number of Muslims in the country. The government also supports the industry.

Jaiz Bank

Jaiz Bank was the first developed bank in Nigeria. Jaiz Bank is the pioneer and leading Islamic bank in Nigeria. Jaiz Bank was established 20 years ago. However, it began operation in the year 2012. This was after obtaining a banking license from the CBN.
The Jaiz bank account also complies with Sharia-compliant banking services in Nigeria. It offers services for persons, individuals, companies, and corporations. The headquarters of the bank is located in Abuja.

Taj Bank

Taj Bank is one of the relatively new banks. It is a newly set up bank in Nigeria established in 2019. The objective is to provide banking solutions to people across the country. The unique thing about Taj Bank is that it works on the principles of Islam. These are done in different ways such as current accounts, savings accounts, investment accounts, and help solutions. The headquarters is located in Abuja, Nigeria.

Lotus Bank

Lotus Bank is one of the most prominent banks in Nigeria. The financial institution is one of the very few Islamic banks in Nigeria. The bank was established in 2017. The bank is committed to providing services that are Sharia-compliant. Lotus Bank offers various bank products and services including savings, investment, and payment platforms. The bank’s headquarters is in Lagos State Nigeria.

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Sun Trust Bank

The Sun Trust Bank is one of the Islamic banks in Nigeria. This is a commercial bank in Nigeria that offers Islamic banking services in Nigeria. The bank obtained a license in 2015 from CBN to start operations. Sun Trust offers various bank products and services including savings, investment, and payment platforms and it also includes treasury services.

Jabeer Investment Company Limited

JIC Ltd is an Islamic Financial institution that helps in the investing of funds in the country. The bank acts as an investment property that provides capital and investment opportunities to persons across the country which complies with Sharia principles.
Also, JIC offers advisory services such as project financing and other capital-finding projects.

Halal investment Limited

Halal Investment Limited is an Islamic organization that is concentrated on investment opportunities. The company offers various Investment products and services which include the following: real estate investment, commodity trading, and equity trading. Its objective is to provide a healthy investment community in compliance with Sharia Islamic principles.

Coronation Merchant Bank

This is one of the leading banks in Nigeria. It offers both conventional and Islamic services to people. The bank offers services just like traditional banks. However, it complies with Sharia principles.

Al Barakah Microfinance Bank

Al-Barakah Microfinance Bank is yet another microfinance bank in Nigeria that operates on Islamic Sharia principles.
Al Barakah Mfb provides microfinance services to business owners and small and medium-scale firms, to alleviate poverty and to promote financial inclusion in the economy.
Al-Barakah Microfinance Bank obeys Sharia-compliant microfinance products, which include savings accounts, loans, and investments to people around Nigeria.

FAQs

Which Islamic banks are in Nigeria?

Some of the Islamic banks operating in Nigeria include:
Jaiz Bank Public Limited liability company
Stanbic IBTC Bank Public Limited Liability Company (Islamic Banking Division)
SunTrust Bank Nigeria Limited (Islamic Banking Window)
TajBank.
Coronation Merchant Bank Limited (Coronation Capital – Islamic Finance Subsidiary).

How does the Islamic Bank work?

Islamic Banks are a type of banking that is based on the law of Islamic law. This means that Islamic Banks do not invest in or give out money for activities that are viewed to be Haram. For example, Islamic banks do not invest in or give out money to organizations that produce products such as pig meat, alcoholic beverages, or betting.

Islamic Banks are profit-oriented organizations. This means that the banks share the profit of any investment. They also share losses equally. The main difference between Islamic Banks and normal commercial banks is that Islamic Banks do not pay and receive interest. This is forbidden in Shariah.

What is the history of Islamic Bank?

The first Islamic bank in the country was created in the year 2003. This is over 20 years ago. Jaiz Bank was created by a group of Islamic scholars and businessmen in Nigeria. It was created out of a need to create Islamic banking in Nigeria.
Since the creation of Jaiz Bank in Nigeria, several other institutions were also created in Nigeria. These banks include Unity Bank, Sterling Bank, etc. The Islamic bank is expected to continue growing for several years. This is due to several factors, including the increase in the number of Muslims in the country. The government also supports the industry.

What are some rules of the Islamic Bank?

Some of the rules in Islamic Banks do not invest in or give out money for activities that are viewed to be Haram. For example, Islamic banks do not invest in or give out money to organizations that produce products such as pig meat, alcoholic beverages, or betting.

Which bank is the first Islamic Bank?

Jaiz Bank was the first developed bank in Nigeria. Jaiz Bank is the pioneer and leading Islamic bank in Nigeria. Jaiz Bank was established 20 years ago. However, it began operation in the year 2012. This was after obtaining a banking license from the CBN.

Conclusion

In conclusion, Islamic banks are great. According to the articles above, they have many branches in the country. The most beautiful thing is that is not only available to people practicing Islam, it is also available to all sorts of religions. Before borrowing money from Islamic Banks, do well to read their terms and conditions very well.