The Alternative Bank (AltBank) has joined the International Islamic Financial Market (IIFM), in a move aimed at enhancing standardisation, transparency and efficiency in Nigeria’s non-interest banking sector.
With the membership, AltBank will align its interbank liquidity documentation with IIFM’s Master Collateralised Murabahah Agreement (MCMA) framework, a globally recognised standard for Shari’ah-compliant financial transactions.
The bank has also announced plans to roll out its first ready-to-sign documentation pack and counterparty onboarding process in the second quarter of 2026.
The documentation pack will include standard templates, term sheets, execution checklists and onboarding requirements, designed to streamline negotiations, reduce transaction timelines and improve execution certainty.
AltBank said integrating global benchmarks into its operations would provide Nigerian consumers and businesses with transparent, internationally recognised ethical banking products.
The adoption of standardised protocols is also expected to minimise transactional complexities and strengthen legal clarity in Shari’ah-compliant deals.
Managing Director of AltBank, Hassan Yusuf, said the move reflects the bank’s commitment to deepening professionalism and scale in the non-interest banking space.
“If non-interest banking is going to mature in Nigeria, we have to stop improvising. We’re aligning with global standards so transactions are clear and built for scale,” Yusuf said.
He added that adopting international benchmarks would enhance operational transparency and efficiency, giving customers and partners greater confidence in executing both small and large transactions.
Acting Chief Executive Officer of IIFM, Dr. Ahmed Rufai, described the membership as a step toward strengthening interest-free financial stability in Nigeria, noting that it signals a commitment to global best practices.
Established in 2002, IIFM develops and publishes standardised Shari’ah-compliant financial contracts and market guidance used across multiple jurisdictions, promoting consistency in the structuring and execution of Islamic finance products.
AltBank began operations in January 2014 as a non-interest banking window under Sterling before receiving a standalone banking licence from the Central Bank of Nigeria in July 2023, enabling it to operate as a fully fledged independent bank.
Guided by its Advisory Committee of Experts, the bank says its operations are structured to comply fully with non-interest banking principles.
Comment here