Hamid Joda – Leading TAJBank’s impressive and steady growth

25 Years Of Democracy In Nigeria (May 29, 1999-2024) – CEOs Whose Companies Are Making Real Impact In Nigerian Economy (Part 1)

Mr. Hamid Joda, founder, managing director and chief executive officer of TAJBank, typifies John Maxwell’s famous assertion that “Everything rises or falls on leadership.” When a leader is visionary, competent and leads by personal example, the organisation he leads typically achieves, even as it surpasses its corporate objectives. At TAJ, Joda is demonstrating the visionary, competent and results -driven leadership Maxwell has in mind when he wrote 21 Irrefutable Laws of Leadership. Founded in 2019, just five years ago, Abuja- headquartered TAJBank, by its third year of business declared dividends for its stakeholders – an unprecedented achievement in Nigerian banking industry. The bank has funded several companies, which in turn have created thousands of jobs for Nigerians directly and indirectly, thus making real impact in the economy. TAJBank’s financial performances are impressive: its Profit before Tax(PBT) rose to N1.6 billion in FY 2021, representing 433 percent over the preceding year ‘s profit. Its balance sheet rose from N50 billion in FY 2020 to N110 billion in FY 2021, signaling a 122 percent growth. Its credit rating upgrade is “BBb+” by Agusto and Company, reflecting the bank’s liquidity profile, satisfactory capitalization, profitability. TAJ also got a short -term rating of A2 and long- term of BBb+ with a stable outlook from DataPro.

Under Joda ‘s robust leadership, the bank recorded over N5 billion profit before tax while raising while raising its balance sheet position to N250 billion. It is the first bank to list Sukuk bond on Nigeria Exchange, NGX, after successfully raising N11.4 billion under its N100 billion Sukuk Series 1 issuance programme. It had also received ISO 27001,ISO 22301 and ISO 20000 certifications on information security, business continuity and IT service management systems. By 2023,TAJ has grown its branches from 23 to 40, including cash centres across Nigeria, even as its workforce is over 1,500 staff in less than five years. The bank achieved break -even in its 8th month of business in 2020 and wiped off operational expenses in its first full year, topping it with a profit before tax of N850 million.

A gold fish has no hiding place .The Joda- led banking entity is being recognized for its impressive works in the African Banking industry.TAJ won Best Sukuk Deal of the Year award by Global Islamic Finance Awards, GIFA,at ceremony held in Dakar, Senegal. At the same ceremony, Joda also received Most Promising CEO of the Year award. At the 6th African International Conference on Islamic Finance, TAJ received Best Innovative Bank of the Year award, Best Mudarabah Sukuk Deal of the Year, even as Joda received Islamic Personality of the Year award at the same ceremony.

Hamid Joda, CEO, TAJBank

Hamid Joda has over 24 years banking experience covering Treasury, Business Development, Consumer/Retail Banking, Branch Banking, and the Public Sector.​ In 2019, he led a team of highly professional bankers to realize the vision of setting up TAJBank Limited, as the second non-interest Bank in Nigeria.

He holds a BSc in Business Administration (Banking & Finance) from the University of Maiduguri and an MBA from Bayero University, Kano. Mr. Hamid Joda was recently conferred with the Fellowship Award of the Chartered Institute of Bankers of Nigeria (CIBN) at an investiture ceremony held on October 29, 2022, in Lagos. Prior to this, he was an Honorary Senior member of the Institute.​

Joda began his career at Niger Insurance Plc in 1999 before moving to City Express Bank Limited, Lagos the same year where he held the position of Senior Supervisor. He has also worked at Continental Trust Bank Ltd, Kano as a Senior Analyst and at the defunct Oceanic Bank International Nigeria Limited. He was the pioneer Branch Manager of Fidelity Bank Plc, Kano from where he rose to the position of Area Manager in charge of the North-East.​

His extensive experience led him to First Inland Bank (Finbank Plc) Abuja as Group Head Retail Banking (North) where he later rose to become the Divisional Head, Retail Banking of the Bank.​ Following the acquisition of FinBank by FCMB in 2012, Mr. Joda rose through the ranks to become the Divisional Head, Public Sector of the Bank, a position he held until 2019 when he founded TAJBank Limited. He is the Managing Director and Chief Executive Officer of the Bank.​

Under his able leadership, TAJBank has emerged as formidable non-interest bank in Nigeria with products and services that continues to ensure growth and prosperity to Nigerians through the deployment of world class human resources and technology. With over 20 branches spread across the country, TAJBank has sustained the tempo of its financial inclusion drive by taking banking products and services to the doorstep of millions of Nigerians, especially the unbanked and underserved populace in the grassroots by empowering them significantly.

The Bank, in July 2022, secured the approval of the Central Bank of Nigeria (CBN) to for nationwide banking operations as against its previous operation as a regional bank. In August, TAJBank got approval of the Nigerian Regulatory Authorities to begin a N100 billion Sukuk bond issuance, the first-ever non-interest private Sukuk bond offer in Nigeria’s capital market. The funds raised through the Sukuk bond will be channeled to key sectors of the Nigerian economy, thereby helping to create jobs and wealth, boost economic activities and improve the non-interest banking sub-sector’s contributions to the nation’s Gross Domestic Product (GDP) growth. The bond has been listed to the general public on the Nigerian Exchange with high expectations that it will be fully subscribed.

With a vision to be the leading African financial institution with a reputation for excellent customer experience and innovative solutions, TAJBank has continued to drive exceptional services, while contributing significantly to national development in line with its core values of trust and justice, customer centric, excellence, determination, and innovation.

TAJBANK PROFILE

TAJBank secured its banking license from the Central Bank of Nigeria on the 3rd of July 2019 and commenced operations on the 2nd of December 2019 with two pioneering branches – its Corporate Branch in Abuja and a branch in Kano. From inception, the Bank has demonstrated an immense appetite for growth and innovation, rendering exceptional services to customers with a well-motivated workforce. As a Bank with the strategic intent of building sustainable ethical Banking products and services, they leverage on mainstream and social media. The Bank’s vision is to become “the leading African financial institution dominating in customer experience and innovative solutions”. The bank actively opens branches across Nigeria, expanding its footprint.

The Bank’s core values include Trust and Justice; Customer-centricity; Excellence; Determination; and Innovation.

Despite the challenges posed by the global pandemic back in 2019/2020, TAJBank proactively expanded its operations and secured licenses for critical banking products, such as Letter of Credit Dealership and Foreign Exchange.

After eight (8) months of productive operations, excellent strategic leadership and effective performance management, the Bank achieved a record high EPS and proceeded to make profit in the subsequent months. Sequel to this record, TAJBank was awarded the Best Non-Interest Bank 2020 by IFN, Thinkers Magazine Bank of the year 2020, Leadership Newspaper Bank of the year 2020, Innovative Islamic Bank of the year 2021 by AICIF and, Business Day BAFI Award Bank of the year 2021.

Since commencing operations, TAJBank has demonstrated its commitment to growth and expansion, reflected by the frequent development of new products. Demonstrating a commitment to growth, TAJBank consistently introduced new products to its fold. Notable offerings include Jualah (contract projects). Jualah reflects the Islamic finance approach of facilitating economic activities while adhering to ethical and Sharia-compliant principles. Musharakah (partnership agreement), CashWaqf (a contract for charity), and refinancing to mention just a few.

TAJBank has opened several additional branches with major expansions in states such as Abuja, Kano, Kaduna and Lagos which individually have at least 3 branches. TAJBank’s expansion strategy involves opening branches in strategic locations, with a focus on states with a thriving commercial presence.

In Abuja, the bank strategically places core branches and cash centers to ensure accessibility to non-interest finance for traders in market spaces. This thus enables the Bank to find newer mediums to connect with a larger audience. A few notable branches in the city of Abuja are National Assembly, Garki Market, Wuse Market, Gudu Market, Gwarinpa, Wuse 2, Ogun House, Kubwa, A.A Rano Airport Road and its Head Office situated along Ahmadu Bello Way, FCT, Abuja. Other branches include Sabon Gari, Kofar Wambai, Zoo Road, MM Way, Naibawa, Bello Road, Hotoro, Kurna Asabe and Kabuga in Kano, Apapa, Bourdillion, Ajah, Trade Fair, Oshodi, Marina in Lagos, Kasuwan Bacci, Kigo Road, Sabon Tasha, Nnamdi Azikiwe Bypass, Kawo in Kaduna, Sokoto, Gombe, Maiduguri, Yola, Borno with recent openings of Port Harcourt and Owerri branches making its entrance in the southern regions of Nigeria following the acquisition of a national license back in August 2022. This has culminated into forty (40) robust and responsive branches and counting.

Despite the economic challenges, TAJ Bank has demonstrated resilience by ensuring rigorous risk assessment procedures were implemented during this period both in the areas of brand expansion and product development.

A flagship product worth mentioning is the Mudarabah Time Deposit popularly referred to as an MTD. The Mudarabah Time Deposit (MTD) is a prominent product which enables Individuals or entities invest a certain amount of money (capital) with TAJBank under a Mudarabah contract.

TAJBank acts as the Mudarib (manager) of the funds, using them for various Sharia-compliant investment activities, this is one of the most ethical investment options for investors, where from a minimum of a 100,000.00 naira, an investment can be made for at least thirty (30) days on a roll over basis.

Investors choosing Mudarabah Time Deposit participate in ethical and socially responsible investment while contributing to the bank’s activities in a mutually beneficial manner.

The strategic commitment of the Bank is to be among the dominant Non-Interest Bank operating in Nigeria with comprehensive non-interest banking products and services coverage; rank among the top 10 Deposit Money Banks (DMBs) in Nigeria; and pursue global branch expansion to achieve more branches across state capitals/major commercial centers.

It launched the first of its kind Mudarabah Sukuk Mudarabah (profit-sharing) an investment in corporate properties, the investors are paid rental incomes bi-annually. TAJBank’s innovative approach is evident in the introduction of the Mudarabah Sukuk.

“Sukuk” refers to Islamic financial certificates, often referred to as “Islamic bonds.” These financial instruments comply with Islamic principles, which prohibit the payment or receipt of interest (usury), and they represent ownership in a tangible asset, service, project, business, or investment activity.

This asset could be real estate, infrastructure projects, or other tangible business ventures.

The Mudarabah Suku was listed on the floor of the Nigerian Exchange – the first of its kind in Africa. This was due to the outstanding success of the Sukuk raising N11.4 billion under its N100 billion sukuk series 1 issuance programme. It contributes greatly to developmental purposes.

TAJBank introduced TAJWAY, a bespoke digital banking platform that supports customers’ activities digitally. One of the unique features of TAJWAY is its multiple transfer option.

This feature enhances the flexibility of fund transfers, allowing customers to perform various types of transfers conveniently within the platform. TAJWAY contributes to making non-interest finance accessible to a larger audience, extending beyond traditional brick-and-mortar branches.

The application design is praised for its amazing, straightforward, and intuitive user interface. It includes a feature were entering the account number automatically shows the top 3 banks accurately 100% of the time – a novel feature of the app.

The platform has incorporated the latest technologies to enhance the overall banking experience for users. The design aims to offer a seamless and user-friendly experience for customers conducting digital transactions. Digital banking platforms prioritize security, and TAJWAY has implemented a robust security measure to safeguard customer information and transactions.

TAJBank’s impressive growth trajectory has attracted mainstream players in the economy and has not only demonstrated that non-interest banking is a very profitable venture but has also proven this through financial results repeatedly.

The declaration of dividends in TAJBank’s 3rd year of business is unprecedented in the Nigerian banking history. Lastly and most importantly, the bank has funded several businesses that have created jobs and made significant impacts in the Nigerian economy.