TAJBank bags A1 ratings from Agusto, Datapro on strong operations

TAJBank Limited has secured an A1 credit rating from Agusto & Co and Datapro, strengthening its position in Nigeria’s fast-growing non-interest banking segment and underscoring investor confidence in its balance sheet and risk management framework.

The upgrade marks an improvement from the Bbb+ rating previously assigned by Agusto about two years ago. The latest assessment reflects what the agencies described as stronger earnings capacity and a high-quality balance sheet in the 2025 financial year, despite a challenging macroeconomic environment marked by currency volatility and inflationary pressures.

TAJBank, which has carved a niche as the country’s leading non-interest lender, has in recent years expanded its branch network and digital banking infrastructure while deepening its footprint among retail and small business customers seeking Shariah-compliant financial services. The A1 rating places the lender among the better-rated institutions within the non-interest banking space, a segment that remains small relative to conventional banking but is gaining traction.

Speaking on the development on the sidelines of a banking stakeholders’ forum weekend in Abuja, Hamid Joda,
founder and chief executive officer, said the ratings validate the bank’s emphasis on governance and operational discipline.
“TAJBank Limited latest ratings by these reputable agencies have again validated the management’s commitment to world-class standardization of the bank’s operations, especially in terms of innovative, real time, techno-powered services and risk management for our growing customers on a sustainable basis,” Joda said.

He added that the bank’s strategy has been anchored on strengthening internal controls, process efficiency and customer protection as it scales. “As we have consistently maintained, our primary goal is to deploy world-class operational standards and services to protect the interest of our customers with a view to surpassing their expectations and retaining TAJBank at the leading edge of the NIB subsector on a sustainable basis,” he said.

The upgrade comes amid a fresh wave of banking consolidation in Nigeria, as lenders race to shore up capital in line with the Central Bank of Nigeria’s new minimum requirements. TAJBank has since met the revised capital threshold, positioning it to compete more effectively in a tightening operating environment marked by elevated funding costs and liquidity pressures.

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With regulators and investors placing renewed emphasis on asset quality, capital buffers and governance standards, analysts say institutions with disciplined risk management frameworks and diversified income streams are better equipped to navigate cyclical shocks and sustain growth.

TAJBank’s management attributes part of its resilience to investment in technology and human capital, as well as a measured expansion strategy.

Sherif Idi, the bank’s executive director, said the ratings reaffirm the bank’s operational trajectory and growth outlook. “The A1 ratings by Augusto & Co and Datapro, the foremost ratings agencies in the country, have reaffirmed TAJBank’s management’s unwavering commitment to best practice standards through prioritization of investment in human capital, innovative technologies and branch network expansion to consistently make our bank the preferred choice for customers in the NIB subsector of the banking sector,” Idi said.

Industry observers note that non-interest banking in Nigeria continues to attract customers seeking ethical financing models and alternative asset structures. TAJBank’s expansion over the past few years, including its push into underserved markets, has been viewed as part of a broader drive to deepen financial inclusion.

While competition in the segment is intensifying, the improved credit rating is likely to enhance the lender’s credibility with counterparties and institutional investors.