Non-Interest Banks engage in partnership contracts, trading contracts, leasing contracts, and other financial services that conform to Islamic commercial jurisprudence. There are three Non-Interest Banks operating in the country, Jaiz Bank Plc, Taj Bank and Lotus Bank Limited.
“We are into setting standards and leading the non-interest banking, especially in Nigeria. When you bank with us, you are free to identify the assets you want to invest in for you to get our loan guarantee. Unlike the conventional banks where you are giving loans or overdrafts to buy the assets, we usually take commercial risks with customers. And those who understand our fundamental advantages have refused to go back to the conventional banks.
“We have impacted mostly on housing delivery for over 30,000 Nigerians, we have invested about N75 billion in the agricultural sector, especially rice and other farm-related products. Our Small and Medium Enterprises portfolio has grown more than N6 billion.”The key difference between traditional finance and Islamic finance is that, under Sharia law, some of the activities used in conventional finance are strictly forbidden. Worthy of note is the non-acceptance or payment of interest on money.