Update shared on 09 Dec 2025
Fair value Increased 26%Jaiz Bank Plc, Nigeria’s pioneer non-interest bank, has been admitted as a Primary Dealer of the International Islamic Liquidity Management Corporation (IILM), marking a significant milestone both for the Bank and the broader African Islamic finance market.
The onboarding was formalised during the CBN–IILM Liquidity Management Capacity Building Conference in Abuja and represents the first time an African financial institution will participate at this level within the IILM global liquidity ecosystem.
The move is aligned with Jaiz Bank’s long-term strategy of deepening its non-interest banking model, strengthening regional integration, and expanding international partnerships with Islamic finance institutions including CBN, IILM and ICD.
Analyst Commentary & Implications
Strategic significance
- First-mover advantage in Africa enhances Jaiz Bank’s institutional credibility within global Islamic markets.
- Improves access to high-quality Shariah-compliant liquidity instruments.
- Supports stronger asset-liability management and mitigates liquidity risk.
Balance sheet impact
- Expected to strengthen liquidity buffers.
- Enhances market stability, especially in a volatile macro-financial environment.
- Could support incremental growth in Islamic sovereign and corporate investment instruments.
Industry implications
- Reinforces Nigeria’s position as an emerging hub for Islamic finance.
- May stimulate broader participation of Nigerian institutions in global Islamic financial markets.
- Supports CBN’s strategic drive to diversify financing frameworks and deepen non-interest banking penetration.
Outlook
The agreement is likely to support Jaiz Bank’s medium-term growth trajectory by:
- strengthening liquidity capacity,
- improving risk management architecture,
- supporting capital-market activities, and
- providing a strategic pathway for regional and global expansion.
For Nigeria’s financial system, the development further validates the increasing relevance of Islamic finance as a complementary financing model, especially for infrastructure funding and capital-market deepening.
Disclaimer
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