See full details as another bank set to begin operation in Nigeria, secures CBN license

• Summit Bank has disclosed that it has received a licence from the Central Bank of Nigeria to begin operation
• The new licenced bank will increase the number of non-interest banks in the country to at least six
• The non-interest banking system is governed by a resilient code of ethics in all its practices and functions, and new are no interests

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Summit Bank has just received provisional licensing from the Central Bank of Nigeria (CBN) to begin operation.

The new licence brings the total number of full-fledged Islamic banks licenced in the country to six.

Nigeria set to get new Islamic bank Photo credit: Bloomberg/contributor
Source: Getty Images

What to know about non-interest banks in Nigeria

Non-interest banking, devoid of interest rates, operates under a robust ethical framework governing all its operations and transactions.

Unlike traditional banking, it fosters a partnership model where customers, whether individuals or businesses are viewed as partners rather than mere clients or borrowers.

This partnership entails sharing both risks and profits associated with assets and ventures.

Central to Non-Interest Banking is adherence to Shariah principles, ensuring absolute transparency in all dealings.

This system arose to address both religious principles and economic realities, offering an alternative financial approach grounded in the ethical foundations of Shariah.

It promotes social justice, equality, and ethical responsibility while meeting diverse financial needs with integrity and transparency.

Here are the lists of Islamic banks in Nigeria

• Jaiz Bank PLC - is the biggest Islamic bank in Nigeria
• Taj Bank
• Lotus Bank Ltd
• The Alternative Bank
• Summit Bank- the latest entrant

NDIC commences paying Heritage Bank depositors

Legit.ng earlier reported that the Nigeria Deposit Insurance Corporation (NDIC) has begun paying customers of the defunct Heritage Bank two weeks after the Central Bank of Nigeria (CBN) revoked the bank’s license.

A bank customer said he received the N10,000 left in his account with Heritage Bank, a testimony similar to those shared by others.

Ayodeji Olowe, founder of the loan management system Lendsqr, reportedly said the NDIC deposited the money in his alternative account using his BVN.

Source: Legit.ng