Onome Amuge
Jaiz Bank has become the first African institution to join the International Islamic Liquidity Management Corporation’s (IILM) network of primary dealers, a move believed to reflect Nigeria’s ambition to integrate more deeply into the global Islamic finance architecture and diversify its sources of financial stability.
The agreement, formalised during a liquidity-management conference jointly hosted by the Central Bank of Nigeria (CBN) and the IILM in Abuja, grants Jaiz Bank access to a portfolio of high-grade, short-term Shariah-compliant instruments issued by the Malaysia-based body. These instruments are widely used in the Gulf and Southeast Asia as core liquidity buffers for Islamic financial institutions.
The onboarding marks a technical milestone for Jaiz Bank, but it also highlights Nigeria’s efforts to reposition its financial sector amid persistent foreign-exchange shortages, rising sovereign borrowing costs and tightening global credit conditions. By linking a domestic bank to the IILM’s international issuance platform, regulators appear to be testing avenues to strengthen systemic liquidity and attract investors who typically overlook African Islamic finance markets.
Haruna Musa, the bank’s managing director, called the development historic, noting that access to IILM’s instruments would boost the bank’s balance-sheet resilience and strengthen its risk-management capacity. He added that the partnership aligns with Jaiz Bank’s longer-term strategy to expand its capital-markets footprint and secure recognition beyond its domestic base.
He further explained that the pact would deepen the Bank’s balance sheet resilience and risk management capacity.
According to the MD/CEO, the agreement would also “Enhance its regional and international visibility within the Islamic finance ecosystem,” adding that it will strengthen its long-term collaboration with the CBN, IILM, ICD, and other global Islamic finance institutions.
He said: “This achievement aligns fully with the board and management strategic aspiration to elevate Jaiz Bank into a leading institution in Africa’s Islamic finance landscape, while supporting the Bank’s growth trajectory and capital-market activities.”
Haruna also expressed gratitude to the Central Bank of Nigeria, IILM management as well the board and staff of Jaiz bank for their support.
