TAJBank Limited, Nigeria’s fastest-growing non-interest bank, has recorded a landmark achievement with its latest ₦20 billion Mudarabah Sukuk issuance, which closed with a 185.15% oversubscription rate.
The offering attracted over ₦57 billion in commitments, signalling deepening investor confidence in the bank and the broader Islamic finance market in Nigeria.
The Sukuk, offering an annual profit rate of 20.5%, is the second tranche of TAJBank’s ₦100 billion Sukuk programme. The strong performance comes despite persistent macroeconomic headwinds and a volatile interest rate environment that has dampened sentiment in other parts of the debt market.
“Let me say that this outstanding performance of the Sukuk bond is a clear demonstration that the bank is enjoying growing investor confidence,” Hamid Joda, TAJBank’s Founder and Managing Director, said. “This can only be attributed to the quality of innovative products and services, value addition TAJBank is delivering in the non-interest banking subsector.”
The bank, which launched in 2019, operates fully on Islamic banking principles, offering ethical, interest-free financial products to a growing segment of the Nigerian market. Since its inception, TAJBank has positioned itself as a disruptor, gaining market share with customer-centric digital offerings and a strong focus on corporate governance.
According to market analysts, the significant oversubscription highlights a maturing appetite for Shariah-compliant instruments among both retail and institutional investors. The high return on offer and the underlying trust in TAJBank’s operations likely contributed to the uptake.
“This investment feat is a clear demonstration of investors’ trust in TAJBank,” Sherif Idi, the bank’s Co-Founder and Executive Director, said. “We will continue to do our best to surpass their expectations through world-class products and services.”
The bond’s success is likely to catalyse more interest in alternative financing options in the country, particularly as conventional financial institutions grapple with non-performing loans and reduced credit appetite.
TAJBank’s Mudarabah Sukuk structure allows investors to share in the profits of the underlying business activities, rather than earning interest—a key requirement under Islamic finance principles. This model is becoming increasingly attractive to both devout investors and those seeking more ethical investment vehicles.
Since entering the market, TAJBank has gained multiple recognitions for its operations. In 2023, it received the Global Islamic Finance Award (GIFA) for “Best Sukuk Deal of the Year” and has been named “Islamic Bank of the Year” by BusinessDay for three consecutive years. In 2020, Leadership Newspaper honoured the bank as “Bank of the Year.”
TAJBank says it remains committed to its long-term goal of becoming one of Nigeria’s top 20 banks by 2029. Analysts suggest that the strong reception of the Sukuk offer marks a significant step in that direction.
“This kind of investor reception sends a strong signal that Islamic finance is not just sustainable—it is scalable,” Musa Danladi, a Lagos-based financial analyst, said. “TAJBank appears to be at the forefront of that evolution in Nigeria.”