Nigeria’s fast-developing Islamic banking system has been selected as a study model for the emerging Islamic banking in The Gambia.
Delegates from The Gambia were at Nigeria’s premier non-interest bank, Jaiz Bank Plc to understudy the successful banking model of the premier Islamic bank.
With average yearly growth rate of 40 per cent and a balance sheet of N300 billion last year, Jaiz Bank has grown over the decade to become a stable financial institution. It has a strong financing structure for agriculture while nearly a quarter of its portfolio is in small and medium enterprises (SMEs).
The Gambian government, through its Ministry of Agriculture and with the support of Islamic Development Bank (IsDB), is implementing the model to boost its agricultural sector and the entire economy.
On the introduction of Al Huda Center of Islamic Banking and Economics (CIBE), a consultant of the IsDB’s project for Islamic microfinance in The Gambia-”Small Ruminant Production Enhancement Project (SRPEP)”, the delegates were taught on various Islamic products and services and on how to structure financing in accordance with the dictates of Islamic banking principles. The SRPEP Programme is being implemented by the Ministry of Agriculture, The Gambia.
The knowledge-sharing session also included aspects of the various financing products, particularly ‘Murabaha’, ‘ServiceIjara’, ‘Istisna’ and ‘Ijara waIqtina’.
Managing Director, Jaiz Bank Plc, Hassan Usman said the bank was ready to work with the team and The Gambian government to share knowledge on Islamic banking and best practices.
He noted that Jaiz Bank has a long-standing relationship with The Gambia and assured the delegates that the bank would continue to explore ways for collaborations for the mutual benefits of the two countries.
He advised the delegates to focus on agricultural financing, as Africa is not only blessed with fertile land to invest on, but also that the sector is the future of the continent.
Also, Jaiz Bank’s Executive Director, Business Development, North, Dr. Salisu Sirajo, advised the delegates not to look at the size of The Gambia but to focus on the market opportunities.
Earlier, Head of The Gambian delegation and Project Coordinator, CPCU, Mr. AbdoulieTouray had said they were in Jaiz Bank to strengthen the existing relationship, and to further understand the workings and challenges of operating and financing businesses under the Islamic banking principles.