TAJBank’s ₦20 Billion Sukuk Bond Oversubscribed by 185%, Raises ₦57 Billion Amid Investor Confidence

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TAJBank Limited has announced that its latest ₦20 billion Mudarabah Sukuk bond was oversubscribed by a record-breaking 185.15%, attracting ₦57.03 billion from investors — a strong show of confidence in Nigeria’s fast-growing non-interest banking sector.

The bank disclosed the figures in an official statement on Friday, confirming that the Sukuk — the second tranche of its ₦100 billion bond issuance programme — achieved remarkable success despite the current economic headwinds.

“This outstanding performance is a clear demonstration that TAJBank continues to enjoy growing investor confidence,”
— Hamid Joda, Founder and Managing Director, TAJBank Limited.

According to the statement, the Sukuk carries a 20.5% annual profit rate and serves as a key instrument to finance ethical investment opportunities, aligning with the bank’s mandate to deepen non-interest financial inclusion in Nigeria.

Investor Oversubscription Reflects Market Trust

TAJBank’s Co-Founder and Executive Director, Sherif Idi, said the overwhelming response from investors underscores sustained trust in the lender’s governance and performance.

“This feat proves that investors believe in TAJBank’s vision and resilience. We will continue to exceed expectations through world-class ethical products and services,” Idi said.

Financial analysts say the Sukuk’s oversubscription highlights Nigeria’s growing appetite for Sharia-compliant investments, as more investors look for stable, interest-free instruments amid high market volatility and inflationary pressures.

Non-Interest Banking Gains Momentum in Nigeria

Industry experts note that TAJBank’s success reinforces the growing relevance of Islamic finance in Nigeria’s economic diversification agenda. The bank’s previous ₦10 billion Sukuk, issued in 2023, was oversubscribed by 115% and remains one of the most notable Islamic finance instruments on the Nigerian Exchange.

TAJBank has also received multiple awards in recognition of its pioneering work in ethical finance, including the Global Islamic Finance Award for “Best Sukuk Deal of the Year” (2023) and BusinessDay’s “Islamic Bank of the Year” awards in 2021, 2022, and 2023.

The bank’s leadership affirmed its continued commitment to ethical growth, financial inclusion, and value-driven partnerships.

Industry Outlook: Islamic Finance Set for Expansion

A recent report by Fitch Ratings projects that Nigeria’s Islamic finance industry will expand significantly between 2025 and 2026, supported by rising sovereign Sukuk issuances, increased regulatory support, and capital growth within non-interest banks.

Fitch noted that non-interest banking assets grew by 110% year-on-year as of end-2024, driven largely by a doubling in customer deposits and financing assets — a trend analysts believe will continue as investors seek ethical alternatives with stable yields.

About the Sukuk Programme

Issuer: TAJBank Limited
Programme Size: ₦100 billion
Second Tranche Offer: ₦20 billion
Subscription Level: ₦57.03 billion (185.15% oversubscription)
Profit Rate: 20.5% per annum
Tenor: [insert tenor, if available]
Instrument Type: Mudarabah Sukuk (Non-interest Islamic bond)

Key Takeaways

TAJBank’s ₦20 billion Sukuk was oversubscribed by 185%, raising ₦57 billion.
The offer is the second tranche of the bank’s ₦100 billion Sukuk programme.
Investors’ strong interest signals growing demand for ethical, non-interest products.
The Sukuk carries a 20.5% annual profit rate amid Nigeria’s high-yield environment.
Islamic finance assets in Nigeria surged by 110% in 2024, according to Fitch Ratings.