Nigerian Bank To Open 500 New Branches, Targets More Customers
- The Alternative Bank is making a move to establish more branches nationwide as part of efforts to improve accessibility to Islamic banking principles
- The bank said it will prioritise financing in healthcare, education, agriculture, renewable energy, and transportation
- AltBank also aims to promote transparency, shared risk, and public understanding of non-interest banking through financial literacy programs
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Alternative Bank (AltBank) has unveiled plans to expand its network from over 130 branches and service locations to as many as 500 nationwide in 2026.
This is part of an ambitious strategy to drive financial inclusion and ethical banking in Nigeria.
Source: Getty Images
Speaking with Islamic Finance Viewpoint, the bank’s Executive Director for the South, Mrs. Korede Demola-Adeniyi , said the non-interest banking (NIB) sector remains significantly underpenetrated, accounting for just 1.7% of Nigeria’s total banking assets in 2024, despite rising demand for ethical and value-based financial services.
Demola-Adeniyi said:
“Non-interest banking is not niche banking; It is ethical banking designed for inclusion. We are not selling to Muslims alone; we are offering a value proposition that works for everyone."
Growth target for non-interest bank
The Sun reports that the bank’s 2026 growth strategy will focus on sectors with strong developmental impact, including healthcare, education, agriculture, renewable energy, and transportation.
AltBank is also exploring structured participation in the creative economy through strategic partnerships, while maintaining full compliance with non-interest banking principles.
It highlighted the partnership-driven nature of NIB, Demola-Adeniyi addressed concerns over perceived overcollateralisation, explaining that transparency and shared risk between banks and customers are central to the model.
She emphasized the need for sustained public education to enhance understanding of NIB structures and their benefits.
Demola-Adeniyi noted:
“Non-interest banking demands honesty and collaboration; When customers understand that the bank is a partner, not just a lender, trust deepens and outcomes improve."
Alongside branch expansion, AltBank plans to intensify financial literacy programmes and agent empowerment initiatives aimed at deepening access to ethical financial services across Nigeria, Punch reports.
With expectations of increased capital inflow and clearer regulatory frameworks in 2026, the bank expressed confidence that non-interest banking will play a more prominent role in Nigeria’s economic transformation.
Source: Getty Images
Islamic bank's difference from traditional bank
- Islamic banks will not pay interest on any savings but give profit.
- They will not charge interest on financial facilities or borrowed money; instead, they focus on partnership-based financing.
- Islamic banks won’t support investments that are against Islamic teachings.
- They don’t and will not support any financial product that offers a lot of uncertainty (Gharar)
- They share profits with their customers
- They share risks with their customers.
Banks that can't open branches outside Nigeria
Earlier, Legit.ng reported that Nigerian banks by licence class obtained from the Central Bank of Nigeria showed that at least 28 banks in the country are currently not authorised to operate internationally.
Under CBN’s regulatory framework, banks with international authorisation are permitted to operate beyond Nigeria’s borders and engage in cross‑border banking activities.
Only seven banks currently hold that status: Access Bank, Fidelity Bank, First City Monument Bank, First Bank Nigeria, Guaranty Trust Bank, United Bank for Africa (UBA), and Zenith Bank.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
