Lotus Bank, a prominent noninterest bank in Nigeria, is dedicated to enhancing interest-free banking services while eliminating fees such as the Commission on Turnover (COT). This initiative is part of the bank’s mission to promote financial inclusion and empower individuals and businesses through Sharia-compliant financial solutions.
During a media forum in Lagos, the bank’s leadership engaged with members of the press and stakeholders to discuss noninterest and ethical banking. Managing Director Mrs. Kafilat Araoye highlighted the media’s pivotal role in raising awareness about these banking principles. This forum showcased the bank’s progress since its establishment as a national noninterest bank (NIB), with its balance sheet expanding from N30 billion to over N350 billion and a customer base growing to nearly 500,000 by October 2024.
Lotus Bank operates across 55 locations in 17 states, ensuring access to innovative noninterest banking services. Addressing the Central Bank of Nigeria’s recapitalization directives, bank executives confirmed compliance with capital requirements while emphasizing their commitment to ethical banking and inclusive growth.
The discussions at the forum touched upon the bank’s profit-sharing model, lack of account maintenance fees, and the significance of socially responsible banking. Mrs. Araoye stated that this event reaffirmed the bank’s dedication to transparency and its mission to educate stakeholders on noninterest banking values.
Sharia Auditor Lukman Rajih clarified noninterest banking principles, emphasizing a model that prohibits interest-based transactions, focusing on clear and tangible benefits. Lotus Bank aims to enhance financial inclusion for both banked and unbanked populations through innovative noninterest products promoting economic prosperity.
