Jaiz Bank has greater than N100bn in financing supporting commerce in cocoa, cashew and different non oil export merchandise, as its general financing portfolio approaches N800bn, its Managing Director, Dr Haruna Musa, has mentioned.
Musa mentioned extra financing was wanted for exporters, producers and micro, small and medium-sized enterprises (MSMEs) to develop manufacturing, create jobs and develop the financial system.
He spoke at a breakfast session of the thirty second Nigeria Economic Summit (NES32) in Abuja on Tuesday.
He mentioned banks wanted to construction financing across the operations and money flows of companies relatively than apply the identical association to each buyer.
“In the non-interest banking model, we have various contracts, and these contracts must align with the business model and cash flows,” he mentioned.
Musa known as for elevated financing for manufacturing and agriculture, saying help ought to cowl completely different phases of the worth chain, from farm inputs to processing and distribution.
He additionally recognized photo voltaic vitality as an space for financing, arguing that help ought to prolong past putting in photo voltaic methods to companies throughout the worth chain.
He mentioned hospitals and different important services may benefit from such preparations.
The Jaiz Bank managing director known as for higher entry to non-interest finance for girls, younger individuals and rural communities, the place restricted banking infrastructure could make it tough for companies to entry monetary providers.
He mentioned digital platforms and partnerships with monetary know-how corporations might assist banks attain extra clients and cut back dependence on bodily branches.
Musa disclosed that he had gone nearly a 12 months with out visiting a financial institution department as a result of he carried out transactions by his cell phone.
Also talking, a Professor of Islamic Law on the University of Ilorin, Prof. AbdulRazzaq Alaro, mentioned non-interest finance might help job creation and financial progress by directing funds in direction of productive actions.
“When you channel money to productive economic activities, you automatically create jobs. You automatically get economic growth, and that will ultimately result in shared prosperity for all,” Alaro mentioned.
He mentioned the mannequin was based mostly on ideas together with danger sharing, asset-l backing and transactions linked to actual financial actions.
Alaro recognized agriculture, infrastructure and MSMEs as areas the place Islamic finance preparations might help funding. He mentioned the Salam contract might be used to finance agricultural manufacturing, whereas Istisna might help building, infrastructure and initiatives involving the manufacturing or supply of specified belongings.
He additionally highlighted Nigeria’s National Halal Economy Strategy, which he mentioned seeks to place the nation to learn from a worldwide halal market estimated at $8 trillion.
According to him, Nigeria is concentrating on a contribution of as much as $12bn to its gross home product by the technique over the approaching years.
He mentioned non-interest banks and different Islamic finance establishments might finance companies serving the halal market, together with these concerned in manufacturing and commerce.
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