Islamic Business Financing in Katsina, Katsina

Halal Credit publishes a three-contract financing menu covering the classical Islamic modes: Murabaha, where the bank buys the asset you need and resells it at a fixed, disclosed markup with instalment payments; Ijara, where it leases business assets while retaining ownership, with an option to buy at term end; and Musharakah, where it co-invests in a business and shares both profit and risk. Its second website even publishes the murabaha workflow: hold an active account, accept profit-sharing principles, submit a valid invoice from an approved vendor, and the goods must be eligible under Islamic guidelines. Margins and tenors are not published.

Jaiz Bank's corporate financing shelf, summarised. Trade Finance covers import (bank issues a letter of credit and resells imported goods at cost-plus on deferred terms) and export. Project/Construction Finance uses Istisna, where the bank commissions construction of a project and sells it to the customer at cost plus profit. Equity-Based Finance uses Musharaka, a true capital partnership sharing profit by ratio and loss by contribution. Lease To Own (Ijara wa Iqtina) and Jaiz Ijara Service Corporate cover plant, machinery, equipment and working-capital service needs. Bonds and Guarantees (Wakala/Kafala) provide advance-payment guarantees, performance and bid bonds. The Wakala-based Jaiz Investment Account for corporates and high-net-worth clients requires a minimum of N300 million.

Financing across the agricultural value chain for smallholder farmers, agro-processors, cooperatives and agribusinesses. Jaiz uses three contracts depending on need: Murabaha (cost-plus) for inputs, raw materials, aggregation and export commodities; Ijara (lease) for machinery, equipment and factory expansion; and Salam (forward sale with upfront payment for future delivery) for crop production. Tenor is short-term of 6 to 12 months or medium-term up to 36 months, matched to the enterprise's gestation and cash-flow cycle, with financing limits based on need and repayment capacity. Jaiz notes partnerships with development institutions such as BOA, CBN, NIRSAL and SMEDAN, and NIRSAL Credit Risk Guarantee where applicable.

Jaiz Bank's financing for micro, small and medium enterprises and their working-capital needs. The MSME line funds businesses that have traded at least a year, run a Jaiz account for at least three months and can show cash flow; the Working Capital line uses an agency-Murabaha where the bank appoints the customer as its agent to source goods, buys them, and the customer repays cost plus profit at a future date. Jaiz also channels government and development-finance intervention schemes through these products, including a BOI Intervention Fund of N3 billion, a SMEDAN Matching Fund of N500 million, a DBN Intervention Fund of N5.4 billion and the BRAVE Women programme. Aimed at traders, retailers and small manufacturers.

Lotus's SME shelf bundles three facilities. SME Finance funds working capital and fixed assets: Murabaha lines run 1 year with 90-day cycles while Ijara terms stretch to 48 months, for businesses at least 1 year old (3 years' management experience per eligibility) that are profitable with clean credit. Traders Coins finances market traders' stock purchases, requiring 6 months' membership of a market association and 12 months' business experience, with a lien on the goods. Agric Finance covers land, equipment, development costs and working capital for registered agribusinesses. All three carry zero account maintenance, processing and management fees.

Lotus's corporate desk runs the full suite of classical Islamic finance contracts. Export finance covers pre-shipment (funding supplier purchases and production overheads) and post-shipment (bridging sight or credit-term export receivables) under Murabaha. Import finance facilitates raw material and finished goods importation on advanced or deferred terms. Cost-Plus Murabaha funds inventory, agriculture and working capital; Ijarah lease finance part-funds capital goods with rentals stepping down as the client buys out the bank's share; Istisna structures tripartite construction and manufacturing projects; and Salam provides advance-payment forward purchases for commodities and agricultural produce.

A short-cycle working-capital product for traders, retailers and wholesalers with quick sales turnover. Murabaha for Traders provides finance from a minimum of N500,000 to a maximum of N5,000,000, with up to N10,000,000 considered for repeat customers on a third request, over a short term of not more than 90 days. It is aimed at profitable SMEs that struggle to meet collateral requirements and only need brief transaction funding. Petroleum products, bureaux de change and financial-services businesses or agents are excluded. Structured as a Murabaha cost-plus purchase of the trader's goods.

Project finance for manufacturing, construction and development using the Istisna contract. At the customer's request TAJBank facilitates the construction, manufacture or development of a project, then sells the delivered project to the customer at a selling price (cost plus profit) on deferred terms or as a lump sum. The bank may engage a third-party contractor to build at the cost price, with the completed project delivered to the bank or directly to the customer. It can finance residential housing, commercial and industrial buildings, or any asset needing manufacture or construction, and the customer's payment can be a lump sum on delivery or progressive payments through the project's life. This is TAJBank's closest route to residential housing finance, on the corporate/development side rather than a retail mortgage.

TAJBank's core business-finance shelf for commercial and corporate customers, summarised. Cost Plus (Murabahah) Working Capital finances raw materials domestically: the bank appoints the customer as agent to source goods, buys them and resells at a disclosed cost-plus price, repaid later. Cost Plus Import Finance issues a letter of credit and resells imported goods at cost-plus on deferred terms. Agency (Wakalah) Letter of Credit lets a fully cash-covered importer have the bank act as agent for a fee (Ujrah). Bonds and Guarantees (Kafalah) provide advance-payment guarantees, performance, bid and custom bonds. Musharaka partnership finance for short-, medium- and long-term needs is also offered. All linked accounts carry zero maintenance fees.

AltLease funds SMEs' acquisition of tangible operating assets: plant and machinery, power solutions, office equipment and vehicles. The published terms are concrete: up to NGN 20,000,000 single obligor limit, a markup rate of 30% per annum (explicitly 'not flat'), a 30% commitment deposit (Hamish), and a maximum tenure of 24 months, with the financing secured by the asset itself since ownership remains with the bank through the lease. Requirements include a one-month corporate relationship, CAC documents, projected cash flow for the facility duration, 3 years' line-of-business experience, 6 months at the trading location, clean credit reports for all directors and a proforma invoice from bank-approved vendors.

AltBiz gives small businesses quick funds for working capital and equipment with fully published terms, a rarity in Nigerian non-interest banking. Financing runs to a maximum of NGN 5,000,000 per business, capped at 20% of annual turnover, at a markup rate of 15.5% flat per annum, with insurance costing 3% per annum and a commitment deposit (Hamish) of 20% of the facility amount. Maximum tenure is 24 months with monthly, quarterly, 90-day or 180-day repayment cycles. Funds are strictly for purchasing raw materials, stock or equipment, never for services, and eligibility requires a one-month TAB corporate relationship, CAC registration, 12 months of statements and proof of 2 years' business existence.

AltBank's inclusion-focused pair. Agriculture SWAY AG offers smallholder farmers, processors, input providers and small agro-businesses up to NGN 20,000,000 at a 9% per annum markup, with a 5% security deposit and 2% takaful cost on the financed asset, designed especially for women and youth in agriculture; cooperatives need registration certificates, an executed MOU and favorable credit reports, while anchor businesses above N20m require audited financials and 20% minimum projected profitability. The Social Mobilization Facility lends up to NGN 250,000 at 9.5% per annum markup to members of trade and market associations, with mobilization and disbursement handled through the bank's agent network.