INTEREST FREE BANKING IN NIGERIA—THE UNFINISHED BUSINESS (Published)
This paper provokes a re-visit of the decision, by the Central Bank of Nigeria (CBN), to establish interest-Free Islamic Banking in Nigeria, against the backdrop of the country’s status as a secular State. It notes that the only difference between an Islamic Bank and a conventional Bank is that the latter charges interest, while the former does not; and that the findings of various empirical studies indicate that Nigeria has a fertile financial environment for interest free banking to thrive. However, its religious colouring, which was the subject of the raging controversy that followed its initial announcement, is a constraint to its availability to non-Muslim Nigerians. Hence, it is an unfinished business that require formulation of new guidelines, to enable formation of non interest banks for the benefit of non Muslim Nigerians.
Keywords: CBN, Christian Precepts, Interest Free Banking, Non-Muslim Nigerians
INTEREST FREE BANKING IN NIGERIA—THE UNFINISHED BUSINESS (Review Completed - Accepted)
This paper provokes a re-visit of the decision, by the Central Bank of Nigeria (CBN), to establish interest-Free Islamic Banking in Nigeria, against the backdrop of the country’s status as a secular State. It notes that the only difference between an Islamic Bank and a conventional Bank is that the latter charges interest, while the former does not; and that the findings of various empirical studies indicate that Nigeria has a fertile financial environment for interest free banking to thrive. However, its religious colouring, which was the subject of the raging controversy that followed its initial announcement, is a constraint to its availability to non-Muslim Nigerians. Hence, it is an unfinished business that require formulation of new guidelines, to enable formation of non interest banks for the benefit of non Muslim Nigerians.
Keywords: CBN, Christian Precepts, Interest Free Banking, Non-Muslim Nigerians