Jaiz Bank Plc has announced plans to introduce collateral-free financing for small and medium-sized enterprises (SMEs), pending approval from the Central Bank of Nigeria (CBN).
The Managing Director and Chief Executive Officer of the bank, Dr. Haruna Musa, disclosed this after the bank’s 14th Annual General Meeting held in Abuja on Wednesday.
According to Musa, the proposed financing products have already been developed and are designed to assess borrowers based on their cash flow rather than traditional collateral requirements. He explained that the initiative aims to improve access to credit for SMEs and retail customers while promoting financial inclusion.
He noted that under the new model, businesses will be evaluated using their transaction records and financial performance, regardless of whether they bank with Jaiz Bank or another financial institution.
The bank chief said the new lending approach would significantly reduce the challenges many small businesses face in securing loans due to lack of physical collateral. Instead, the bank plans to rely on alternative safeguards such as loan guarantees and Global Standing Instruction (GSI) mandates.
Musa also revealed that the bank intends to digitise the financing process, enabling customers to apply for and receive funding through their mobile devices without visiting a branch.
He stated that the initiative aligns with Jaiz Bank’s broader strategy of supporting agriculture, SMEs, and underserved communities through digital banking solutions and an expanding agency banking network.
In a related development, shareholders approved plans for the bank to raise an additional N150 billion in capital to strengthen its operations and support future growth.
Musa said the capital raising exercise would likely be carried out in two or three phases once regulatory approvals are secured. He added that the bank aims to complete the process between July and September.
The additional funds, he explained, will be used to finance larger projects in key sectors including agriculture, manufacturing, export trade, renewable energy, and food security. Part of the capital will also support the bank’s alternative energy financing programme.
Despite global economic uncertainties and rising operational costs, Musa expressed confidence in the bank’s outlook. He said Jaiz Bank has adopted several cost-saving measures, including moving some branches off-grid, deploying inverter-powered facilities, and preparing to introduce electric vehicles into its operations.
The bank recorded strong financial performance in 2025, with total assets rising by 19 per cent to nearly N1.3 trillion. Customer deposits increased by more than 24 per cent to over N1.12 trillion, while profit before tax grew by 28 per cent to N31.24 billion.
Musa further disclosed that Jaiz Bank currently operates 55 branches across Nigeria and plans to open 10 more before the end of the year. The lender is present in 26 states and hopes to establish branches in all state capitals within the next two years.
Looking beyond Nigeria, he said the bank is targeting regional expansion within the next five years as it seeks to strengthen its position in the non-interest banking sector.
The bank has also enjoyed strong investor confidence, with its share price more than doubling in the first four months of the year, making it one of the best-performing banking stocks on the Nigerian Exchange.
