Jaiz Bank Plc has disclosed that it is awaiting approval from the Central Bank of Nigeria (CBN) to introduce new financing products that will allow small and medium-scale enterprises (SMEs) to access loans without traditional collateral requirements.
The Managing Director and Chief Executive Officer of Jaiz Bank, Dr. Haruna Musa, made the disclosure while speaking with journalists in Abuja on Wednesday after the bank’s 14th Annual General Meeting.
According to Musa, the proposed products have been designed to support SMEs and retail customers through cash-flow-based lending, enabling the bank to assess borrowers using their transaction history and financial capacity rather than physical collateral.
“We have developed an SME-friendly product just awaiting the approval of our regulator, the Central Bank of Nigeria. Once that is achieved, we will be doing cash-flow lending. We’ll assess you based on your actual cash flow, either with Jaiz Bank or with any other bank, and then we can lend to you depending on the capacity that you have,” he said.
He explained that the initiative is aimed at deepening financial inclusion and improving access to financing for small businesses that often struggle to meet conventional collateral requirements.
Musa noted that under the new model, loan guarantees and signed Global Standing Instruction (GSI) mandates may replace traditional collateral structures.
“Instead of that collateral structure, we might end up getting loan guarantees and signed GSI mandates. With that, we intend to see a lot of improvement in support for SMEs,” he added.
The Jaiz Bank chief executive said technology would play a major role in the rollout of the new products, allowing customers to apply for financing remotely through digital platforms.
“We intend to make it a straight-through process whereby, from the comfort of your office or your home, you can use your mobile device to access our financing seamlessly without having to come to the bank,” Musa stated.
He said the initiative aligns with the bank’s broader strategy of supporting agriculture, micro, small and medium enterprises, and underserved communities through digital banking channels and agency banking networks.
Musa also announced that shareholders approved plans to raise an additional N150 billion in capital to strengthen the bank’s balance sheet and support future expansion.
According to him, the capital raise is expected to be implemented in two or three tranches after obtaining the required regulatory approvals.
“With this resolution today, we will move to the next step of appointing the transaction parties and obtaining regulatory approvals. We are looking at commencing the process immediately and achieving everything within this quarter, from July to September,” he said.
The fresh capital, he noted, will be deployed to finance larger transactions in strategic sectors including agriculture, manufacturing, export trade and renewable energy.
The bank also plans to support food security initiatives, agricultural value chains and alternative energy projects through its newly introduced renewable energy financing products.
Despite prevailing economic challenges and global uncertainties, Musa expressed optimism about the bank’s performance outlook.
He revealed that 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.
“We are still very optimistic that, in spite of the elevated costs, we will see improvement in our cost-to-income ratio this year,” he said.
The bank recorded strong financial performance in 2025, with total assets rising by 19 per cent to nearly N1.3 trillion. Customer deposits grew by more than 24 per cent to over N1.12 trillion, while profit before tax increased 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 additional branches before the end of the year, expanding its network to 65 locations.
The lender is currently present in 26 states and aims to establish a presence in all state capitals within the next two years. It is also targeting international expansion within the next five years as part of its long-term growth strategy.
Investor confidence in the bank has remained strong. Earlier this year, Jaiz Bank recorded one of the strongest performances on the Nigerian Exchange, with its share price rising by 106.6 per cent in the first four months of the year.
The stock, which opened the year at N4.55 per share, climbed to N9.40 per share, outperforming both the broader market and the banking sector during the period.
