Discover the top non-interest banks in Nigeria for 2025, including Jaiz Bank, TAJBank, and more. Learn about Islamic banking principles, benefits, and how to choose the right bank.
Non-interest banking, also known as Islamic banking, is gaining significant traction in Nigeria as a viable alternative to conventional banking. Operating under principles that align with Islamic commercial jurisprudence, non-interest banks prohibit interest (riba), speculative behavior, gambling, and funding of unethical industries. Instead, they focus on ethical, profit-sharing, and asset-backed financial models that promote fairness and inclusivity.
This blog post provides an in-depth guide to the top non-interest banks in Nigeria, their contact details, principles, benefits, and why they are a compelling choice for individuals and businesses in 2025.
What is Non-Interest Banking?
Non-interest banking operates on ethical financial principles rooted in Islamic commercial law (Sharia). Unlike conventional banks that rely on interest-based transactions, non-interest banks adhere to the following core principles:
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Prohibition of Interest (Riba): No interest is charged or paid on loans, deposits, or financial transactions.
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Prohibition of Uncertainty (Gharar): Transactions must be transparent, with no speculative or ambiguous elements.
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Prohibition of Gambling (Maysir): Financial activities must avoid any form of gambling or undue risk.
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Ethical Investments: Funds cannot be invested in industries deemed unethical, such as alcohol, tobacco, adult entertainment, or arms manufacturing.
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Profit and Loss Sharing: Financial transactions are based on partnerships, leasing, or trading contracts where risks and rewards are shared.
These principles ensure that non-interest banking promotes financial inclusion, ethical investments, and economic stability, making it appealing to both Muslim and non-Muslim customers seeking transparent and equitable banking solutions.
Why Choose Non-Interest Banking in Nigeria?
Non-interest banking offers unique advantages that cater to Nigeria’s diverse population:
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Ethical and Transparent Operations: Non-interest banks prioritize fairness, ensuring all transactions are asset-backed and free Ethical and Transparent Operations: Non-interest banks prioritize fairness, ensuring all transactions are asset-backed and free from exploitative practices.
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Financial Inclusion: Non-interest banking serves underserved communities, including those who avoid conventional banking due to religious or ethical beliefs.
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Diverse Financial Products: From profit-sharing investment accounts to Sharia-compliant mortgages, non-interest banks offer innovative products tailored to customer needs.
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Economic Stability: By focusing on real economic activities (e.g., trading and leasing), non-interest banks contribute to sustainable economic growth.
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Global Appeal: With the rise of Islamic finance worldwide, non-interest banking connects Nigeria to a global financial ecosystem.
List of Non-Interest Banks in Nigeria for 2025
Below is a comprehensive list of non-interest banks operating in Nigeria, complete with their contact details, headquarters, and unique offerings. These institutions are fully licensed by the Central Bank of Nigeria (CBN) and adhere to Sharia-compliant banking standards.
1. Jaiz Bank Plc
Overview: Jaiz Bank Plc is Nigeria’s pioneer non-interest bank, established in 2012. It offers a wide range of Sharia-compliant products, including savings accounts, trade finance, and home financing.
Headquarters: Kano, Nigeria
Website:www.jaizbankplc.com
Email: info@jaizbankplc.com (mailto:info@jaizbankplc.com)
Key Products:
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Mudarabah Savings Account (profit-sharing)
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Murabaha Financing (cost-plus financing)
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Ijara (leasing-based financing)
Why Choose Jaiz Bank? Jaiz Bank is renowned for its extensive branch network across Nigeria and its commitment to financial inclusion, particularly in the northern regions. It’s an excellent choice for SMEs and individuals seeking ethical banking solutions.
2. LOTUS Bank
Overview: LOTUS Bank is a fast-growing non-interest bank focusing on innovative digital banking solutions and ethical investments. It caters to both retail and corporate clients.
Headquarters: 30A Adetokunbo Ademola Street, Victoria Island, Lagos
Website:www.lotusbank.com
Phone Numbers: 0700 56887 2265, 0700 0100 0000
Key Products:
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Takaful (Islamic insurance)
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Sukuk (Islamic bonds)
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Digital banking platforms
Why Choose LOTUS Bank? LOTUS Bank stands out for its tech-driven approach, offering seamless online and mobile banking services. It’s ideal for tech-savvy customers seeking modern, Sharia-compliant financial solutions.
3. Summit Bank Limited
Overview: Summit Bank Limited is a newer player in Nigeria’s non-interest banking space, emphasizing community-focused banking and ethical investments.
Headquarters: No. 5 Amal Pepple, off Ameyo Adedovoh Way, Jahi, Abuja
Email: info@summitbanking.com (mailto:info@summitbanking.com)
Phone Number: 0700 78664 82265
Key Products:
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Qard Hasan (interest-free loans)
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Musharaka (partnership financing)
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Community development financing
Why Choose Summit Bank? Summit Bank is perfect for customers in Abuja and surrounding areas, with a strong focus on supporting local businesses and community projects through ethical financing.
4. TAJBank Ltd.
Overview: TAJBank Ltd. is a leading non-interest bank known for its innovative products and nationwide reach. It combines traditional Islamic banking principles with modern financial services.
Headquarters: Plot 72 Ahmadu Bello Way, Central Business District, Abuja
Website:www.tajbank.com
Email: tajconnect@tajbank.com (mailto:tajconnect@tajbank.com)
Phone Numbers: +234 908 793 7417, +234 700 825 2265
Key Products:
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Wakala (agency-based financing)
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Istisna (manufacturing financing)
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Salary accounts with profit-sharing
Why Choose TAJBank? TAJBank is a top choice for customers seeking a balance of innovation and tradition. Its robust digital platforms and ethical investment options make it a standout in 2025.
5. The Alternative Bank
Overview: The Alternative Bank offers non-interest banking services with a focus on accessibility and customer-centric solutions. It serves both urban and rural customers.
Headquarters: 239 Ikorodu Road, Ilupeju, Lagos
Email: help@altbank.ng (mailto:help@altbank.ng)
Phone Number: 02 017 000 555
Key Products:
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Non-interest microfinance
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Trade financing
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Sharia-compliant savings accounts
Why Choose The Alternative Bank? The Alternative Bank excels in providing microfinance and SME support, making it a go-to for entrepreneurs and small businesses looking for ethical funding.
6. SunTrust Bank Nigeria Ltd (Non-Interest Banking Window)
Overview: SunTrust Bank operates a dedicated non-interest banking window, offering Sharia-compliant products alongside its conventional services. It’s ideal for customers seeking flexibility.
Headquarters: #1, Oladele Olashore Street, Off Sanusi Fafunwa Street, Victoria Island, Lagos
Website:https://suntrustng.com/nib-faq/
Phone Numbers: 02-01-2802143, 02-01-2802144
Email: helpdesk@suntrustng.com (mailto:helpdesk@suntrustng.com)
Key Products:
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Non-interest current accounts
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Sharia-compliant trade finance
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Islamic treasury products
Why Choose SunTrust Bank? SunTrust Bank’s non-interest window is perfect for customers who want the flexibility of both conventional and Islamic banking under one roof.
How Non-Interest Banks Operate in Nigeria
Non-interest banks in Nigeria operate under a framework regulated by the Central Bank of Nigeria (CBN). They engage in the following types of contracts:
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Partnership Contracts (Musharaka and Mudarabah): These involve profit and loss sharing between the bank and the customer, fostering a collaborative approach to wealth creation.
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Trading Contracts (Murabaha): The bank purchases an asset and sells it to the customer at a markup, ensuring transparency and fairness.
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Leasing Contracts (Ijara): Customers lease assets from the bank, with payments structured to avoid interest.
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Fee-Based Services (Wakala): The bank acts as an agent for certain transactions, earning a fee without engaging in interest-based activities.
These models ensure that all transactions are asset-backed and aligned with ethical principles, reducing financial risk and promoting sustainable growth.
Benefits of Non-Interest Banking for Nigerians
Non-interest banking offers numerous benefits for individuals, businesses, and the broader economy:
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Inclusivity: It caters to Nigeria’s diverse population, including those who avoid conventional banking for religious or ethical reasons.
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Risk Mitigation: By avoiding speculative investments, non-interest banks reduce the risk of financial crises.
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Support for SMEs: Non-interest banks provide tailored financing for small and medium enterprises, driving entrepreneurship.
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Global Connectivity: Nigeria’s non-interest banks align with the global Islamic finance market, opening opportunities for international trade and investment.
Challenges Facing Non-Interest Banking in Nigeria
Despite its growth, non-interest banking faces some challenges:
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Limited Awareness: Many Nigerians are unfamiliar with Islamic banking principles, leading to low adoption rates.
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Regulatory Gaps: While the CBN regulates non-interest banks, further standardization is needed to ensure consistency.
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Competition: Conventional banks dominate the financial sector, making it challenging for non-interest banks to gain market share.
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Infrastructure: Some non-interest banks lack the technological infrastructure to compete with global players.
However, with increasing awareness and government support, these challenges are gradually being addressed, positioning non-interest banking for exponential growth in 2025 and beyond.
How to Choose the Right Non-Interest Bank in Nigeria
When selecting a non-interest bank, consider the following factors:
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Product Offerings: Ensure the bank offers products that align with your financial goals (e.g., savings, financing, or investments).
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Accessibility: Choose a bank with branches or digital platforms that are convenient for you.
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Reputation: Research the bank’s track record and customer reviews to ensure reliability.
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Sharia Compliance: Verify that the bank adheres to strict Sharia standards, as certified by a Sharia advisory board.
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Customer Support: Opt for a bank with responsive customer service to address your queries promptly.
By evaluating these factors, you can select a non-interest bank that meets your needs and aligns with your values.
The Future of Non-Interest Banking in Nigeria
The future of non-interest banking in Nigeria is bright, driven by several trends:
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Digital Transformation: Non-interest banks are investing in fintech solutions, such as mobile apps and blockchain-based platforms, to enhance customer experience.
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Government Support: The CBN and federal government are promoting Islamic finance to boost financial inclusion and economic growth.
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Global Partnerships: Nigerian non-interest banks are forging partnerships with international Islamic financial institutions, expanding their reach.
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Sukuk Issuance: The government and private sector are increasingly issuing Sukuk (Islamic bonds) to fund infrastructure projects, creating opportunities for non-interest banks.
As these trends unfold, non-interest banking is poised to play a pivotal role in Nigeria’s financial landscape, offering ethical and innovative solutions for all.
Non-interest banking in Nigeria is more than just an alternative to conventional banking—it’s a transformative financial model that promotes fairness, inclusivity, and sustainability. With institutions like Jaiz Bank, LOTUS Bank, TAJBank, and others leading the charge, Nigerians have access to a diverse range of Sharia-compliant products tailored to their needs. Whether you’re an individual seeking ethical savings accounts or a business looking for trade financing, non-interest banks offer solutions that align with your values and financial goals.
Ready to explore non-interest banking? Visit the websites of the banks listed above or contact their customer service teams to learn more. By choosing non-interest banking, you’re not just managing your finances—you’re contributing to a more equitable and prosperous Nigeria.
