Vol. 8 No. 1 (2025): IJUS Vol. 8, Issue 1, January 2025
Articles

AN ANALYSIS OF THE FINANCIAL PERFORMANCE OF JAIZ AND TAJ BANKS THROUGH SHARI‘AH-COMPLIANT PRODUCTS

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  • Nazifi Dahiru Abdullahi1,
  • Abubakar Sadiq Isyaku2
Nazifi Dahiru Abdullahi1
Jigawa State College of Remedial and Advanced Studies, Babura, Nigeria
Abubakar Sadiq Isyaku2
Islamic University in Uganda

Published 2025-03-25

Keywords

  • Islamic Banking,
  • Nigeria,
  • Shari’ah-Compliant Products,
  • Return on Equity (ROE),
  • Murabahah,
  • Ijarah,
  • Sukuk,
  • Financial Performance
    • ...More
    Less

How to Cite

Nazifi Dahiru Abdullahi, & Abubakar Sadiq Isyaku2. (2025). AN ANALYSIS OF THE FINANCIAL PERFORMANCE OF JAIZ AND TAJ BANKS THROUGH SHARI‘AH-COMPLIANT PRODUCTS. IJUS | International Journal of Umranic Studies, 8(1), 59–74. Retrieved from https://unissa.edu.bn/journal/index.php/ijus/article/view/979
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Abstract

Methodology: This study adopts an ex post facto quantitative research design to evaluate the impact of three Shari’ah-compliant products—Murabahah, Ijarah, and Sukuk—on the financial performance of Jaiz and Taj Banks in Nigeria. Secondary data from the banks’ annual reports covering 2019 to 2023 were analyzed using descriptive statistics, correlation analysis, and Ordinary Least Squares (OLS) regression.

Main Findings: The findings reveal that Murabahah and Sukuk have a significant and positive effect on the banks’ financial performance as measured by Return on Equity (ROE), whereas Ijarah has no statistically significant impact. These results suggest that Murabahah and Sukuk are more effective in driving profitability in the context of Nigerian Islamic banks.

Application of this Study: The study offers practical insights for Islamic banks in Nigeria and other emerging markets, highlighting which Shari’ah-compliant financial instruments can better enhance profitability. It informs strategic investment decisions and supports financial institutions in optimizing the deployment of Islamic products.

Novelty/Originality of this Study: Unlike previous research primarily conducted in Asian contexts, this study fills a significant research gap by providing empirical evidence from the Nigerian Islamic banking sector. It uniquely evaluates both banking and non-banking Shari’ah-compliant products using recent and localized data.

Significance: This study contributes to the limited body of empirical research on Islamic banking in sub-Saharan Africa. It supports policy development, investor confidence, and product innovation in non-interest banking systems, thereby promoting financial inclusion and ethical finance in the region.

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