TAJBank Limited has announced a remarkable achievement with its latest N20 billion Mudarabah Sukuk bond, which was oversubscribed by 185.15%, drawing a total of N57.03 billion from investors. The bank shared the update in a statement released on Friday, noting that the offer significantly exceeded its target. The Sukuk, offering a 20.5% annual profit rate, marks the second tranche in the bank’s larger N100 billion Sukuk bond programme.
According to TAJBank’s Founder and Managing Director, Hamid Joda, the oversubscription is a strong indicator of growing investor confidence in the bank. He highlighted that this success was achieved despite ongoing economic pressures on households and businesses. Joda also attributed the impressive result to TAJBank’s innovative and ethical financial offerings, which continue to set it apart in Nigeria’s non-interest banking sector. He thanked the bank’s management team, regulators, and investors for their roles in the successful issuance, and assured stakeholders that TAJBank remains committed to protecting their interests.
Echoing this sentiment, the bank’s Co-Founder and Executive Director, Sherif Idi, stated that the oversubscription is a reflection of the trust investors have in TAJBank. He emphasized that the bank is committed to exceeding expectations through the delivery of world-class, Sharia-compliant financial products and services. The strong demand for the Sukuk bond also suggests that ethical finance is gaining traction in Nigeria, especially among investors seeking alternative, high-yield instruments in a volatile economic climate.
Since launching five years ago, TAJBank has made significant strides in Nigeria’s non-interest banking industry. The bank has focused on delivering customer-centric solutions and aims to rank among the country’s top 20 banks by 2029. It has also gained widespread recognition within the Islamic finance community. In 2023, TAJBank won the Global Islamic Finance Award for “Best Sukuk Deal of the Year.” Additionally, it was named “Islamic Bank of the Year” by BusinessDay for three consecutive years (2021–2023), and “Bank of the Year” by Leadership Newspapers in 2020.
The current Sukuk issuance follows TAJBank’s debut N10 billion Sukuk bond issued in 2023, which was oversubscribed by 115% and became the first of its kind to be listed on the Nigerian Exchange. This latest tranche builds on that momentum, reinforcing TAJBank’s strategy to expand its Sukuk programme and offer ethical investment opportunities to a broader public.
Looking ahead, industry analysts expect Nigeria’s Islamic finance sector to continue growing from the second half of 2025 through 2026. This growth will likely be driven by an increase in sovereign Sukuk issuances, expanding Islamic banking assets, and new regulatory measures aimed at developing the non-interest financial market. According to Fitch Ratings, the assets of Nigeria’s non-interest banks grew by 110% year-on-year as of the end of 2024, with both deposits and loans more than doubling in value.