Jaiz Bank doles out N502m ‘haram’ proceeds to charity

In from Ali Smart….

In line with Islamic teachings, Jaiz Bank says it has transferred the sum of N502 million for charity, being monies realised from non-sharia compliant transactions (Haram).

In a statement contained in the bank’s annual report released in Abuja at its third annual general meeting, the bank said: “All the gains (N502 million) made from Haram (prohibited by Islamic sharia law) sources have been set aside in a separate account and transferred to Jaiz Foundation for charitable purposes.”

These Haram sources include interest made on deposits with the Central Bank of Nigeria (CBN) and penalties realized from defaulting customers which Islam considers as Haram. The Bank said it did not finance any business activities involving tobacco, gambling and alcohol.

In the last three years of the bank’s existence, Jaiz bank said the charitable activity of Jaiz Foundation was in the area of providing groceries to more than 20,000 internally displaced persons in the North-East of the country during the year.

Addressing shareholders at the event on Wednesday, chairman of the bank, Alhaji Umaru Abdul Mutallab said the bank has recapitalized to a point where CBN can now consider issuing a national license to Jaiz Bank because the bank has done all the spade work and is now waiting for CBN to issue it the national license.

Abdul Mutallab told shareholders that the bank’s “total assets moved in double digits by 24 per cent from N33.9 billion in 2013 to N42 billion in 2014.”

He stated that during the year 2014, Jaiz Bank “was able to drive itself to break even, a feat that is highly phenomenal when one considers the fact that there is no platform yet for the bank to make income from its treasury management activities due to the absence of sharia-compliant liquidity instruments in the market.”

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