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Lotus Bank reiterates commitment to banking without interest, COT charges

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6 months ago

Lotus Bank, a leading non-interest bank in Nigeria, has renewed its commitment to providing interest-free banking services and eliminating charges such as Commission on Turnover (COT). This unique approach aligns with Lotus Bank’s mission to foster financial inclusion and empower individuals and businesses through Sharia-compliant financial solutions.

At a recent media forum in Lagos, Lotus Bank brought together its executive team, members of the press, and other stakeholders to deepen understanding and engagement with the principles of non-interest and ethical banking. Managing Director Mrs Kafilat Araoye expressed her gratitude to the media, acknowledging their role in raising public awareness about non-interest banking.

The forum provided an opportunity for Lotus Bank to showcase its growth and impact three years after becoming a national non-interest bank (NIB).

Since its inception, the bank’s balance sheet has grown from N30 billion to over N350 billion. Additionally, its customer base has expanded by 100 percent, from 250,000 in 2023 to nearly 500,000 by the end of October 2024. Lotus Bank now operates in 55 locations across 17 states, enhancing access to its innovative non-interest banking services.

Addressing the recapitalisation directive by the Central Bank of Nigeria (CBN), a bank executive assured stakeholders that Lotus Bank meets the required capital standards and continues to inject capital into its operations. This financial stability underpins the bank’s commitment to ethical banking practices and inclusive growth.

Representing the Managing Director, Executive Director Dr Isiaka Ajani-Lawal emphasised the importance of media partnerships in communicating Lotus Bank’s mission and values.
“This engagement is essential in broadening awareness of ethical banking in Nigeria,” he stated.

Discussions during the forum centred on Lotus Bank’s profit-sharing model, zero account maintenance fees, and the significance of socially responsible banking.

Mrs Araoye noted that the forum served not only as a platform to connect with stakeholders but also as a reaffirmation of the bank’s dedication to transparency, community impact, and ethical partnerships.
“This gathering reaffirms our commitment to educating and engaging with our stakeholders about the values of non-interest banking. We believe in creating awareness about ethical banking and providing financial options that align with the values of the communities we serve,” she said.

Shariah Auditor Lukman Rajih further clarified the principles guiding non-interest banking, noting that the model prohibits interest-based transactions, supporting only those that are clear and tangible.
Through its ethical banking model, Lotus Bank continues to expand financial inclusion, serving the banked, unbanked, and underbanked populations with innovative non-interest products that support economic prosperity.

L-R: Chief Risk Officer, Olusesan Ajayi; Team Lead, Internal Sharia Auditor, Lukman Rajih; Group Head, Public Sector, Adeoye Abiodun; Executive Director, Isiaka Ajani-Lawal; Chief Audit Executive, Saheed Ekeolere; Divisional Head, Business Development, Tunde Lawal, all of Lotus Bank at the inaugural Stakeholder Engagement Forum hosted by Lotus Bank in Lagos on Tuesday, November 5, 2024.

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