Jaiz Bank Plc has disclosed plans to introduce a new financing model that would allow small and medium-sized businesses in Nigeria to access loans without relying on traditional collateral, pending regulatory approval from the Central Bank of Nigeria.
The proposed product is designed to assess borrowers primarily through cash-flow performance rather than fixed assets, with the bank positioning the initiative as part of efforts to improve access to finance and expand financial inclusion across underserved segments of the economy.
The lender said the product has already been developed and is currently awaiting final approval before rollout. Once introduced, eligible businesses and retail customers would be able to access financing based on transaction history and repayment capacity instead of conventional collateral requirements.
Brandspur Banking News Desk understands that the model may also incorporate alternative risk-management tools including guarantees and account-linked recovery structures intended to strengthen repayment confidence while reducing barriers that have historically limited SME borrowing.
The bank indicated that technology will play a central role in delivery, with plans to create a digital financing process that enables customers to initiate and complete applications remotely without visiting physical branches.
According to the bank’s broader growth strategy, the initiative aligns with ongoing efforts to deepen support for agriculture, micro and small businesses, and financially underserved communities through digital banking channels and agency networks.
Alongside the financing announcement, shareholders approved plans for a fresh capital raise of up to ₦150 billion to support business expansion and strengthen the bank’s balance sheet. The institution expects the exercise to proceed in phases after obtaining the necessary approvals.
Jaiz Bank said the additional capital is expected to improve its capacity to fund larger transactions across agriculture, manufacturing, export trade and renewable energy while strengthening food security financing and alternative energy initiatives.
The lender also outlined operational expansion plans, including opening additional branches before year-end and extending presence across more Nigerian states as part of its medium-term growth ambitions.
Recent financial performance released by the bank showed continued growth in assets, deposits and profitability, reinforcing investor interest as the institution positions itself for wider scale within Nigeria’s non-interest banking sector and longer-term regional ambitions.
