It also prohibits funding of unethical ventures such as, alcohol, tobacco, ammunition manufacturing and adult entertainment institutions and also prohibits any form of gambling.
Islamic banking operates in profit and loss sharing basis. In essence, Islamic banking operates in accordance with Sharia law, which prohibits usury and speculations. So if your faith does not encourage interest payments, these banks are ideal for you and your business. Read further on advantages and disadvantages of Islamic and Non-interest Banking.
There are about four (4) Islamic or non-interest banks in Nigeria. They are:
- Jaiz Bank
- Taj Bank
- Lotus Bank
- Alternative Bank Ltd
Jaiz Bank
Jaiz Bank is the pioneer Islamic and non-interest banking in Nigeria. the bank`s products and services in regards deposits and investments comply strictly with Shaira law.
Address: Kano House, No 73 Ralph Shodeinde Street, Central Business District, Abuja
Website: www.jaizbankplc.com
Taj Bank
Taj Bank is a non-interest bank but adopts profit sharing. The bank operates a high ethical standard, and gives its customers an outstanding service in a new partnership approach to banking.
Address: Plot 72 Ahmadu Bello Wat, Central Business District, Abuja
Website: www.tajbank.com
Lotus Bank
Lotus Bank started operation in July 2021, is a non-interest bank.
According to the Founder and Managing Director of the bank, Mrs. Kafilat Araoye, the bank`s values are deeply rooted in partnership. A critical component of its mission is the provision of innovative solutions that drive ethical prosperity for all stakeholders. Lotus Bank prides itself on digital solutions that provide its customers with the convenience of unlimited access to its services and products.
the banks products and services include non-interest business financing, deposit products (current, savings and investment accounts), and personal financing.
Address: 30A Adetokumbo Ademola Street, Victoria Island, Lagos
Website: www.lotusbank.com
Alternative Bank Ltd
Alternative Bank Ltd is a subsidiary of Sterling Bank PLC.
Sterling Bank Plc has received the Central Bank of Nigeria‘s (CBN) Approval-in- Principle for a stand-alone license for its non-interest banking business. The bank will comply with Islamic principles in its dealings. Before receiving CBN’s approval to operate a stand alone non-interest banking, Sterling has been offering Islamic or non-interest banking services such as Mudaraba, partnership etc under Sterling alternative Bank. With the approval, it can now operate as a full fledge bank.
Address: 20 Marina Street, Lagos Island, Lagos
Website: www.saf.ng