Don't Miss


Home   >   Business   >   Industries   >   Banking   >   “Islamic banking good for Nigeria” – Ali

“Islamic banking good for Nigeria” – Ali

By on January 8, 2015

The President, Islamic Development Bank, Jeddah, Saudi Arabia, Dr. Ahmad Ali, says Islamic banking has the capacity to boost economic growth and development in Nigeria.

He said the banking system could help the government to raise huge sums of money to finance developmental projects in the country.

He added that it would assist small and medium enterprises to grow through availability of cheap credit facilities.

Ali on Tuesday during a thematic workshop on ‘Development of Islamic banking in Africa’ in Ilorin, Kwara State.

The workshop was jointly organised by the Islamic Research h and Training Institute, University of Ilorin and Al-Hikhmah University, Ilorin.

Ali, who was represented by the Senior Economist, Islamic Research and Training Institute, Dr. Ousmane Seck, decried the slow pace of growth of Islamic banking in Nigeria and many parts of Africa.

He identified lack of awareness of Islamic banking, lack of indigenous experts or professionals to undertake Islamic banking and misconception about Islamic financing as some of the challenges inhibiting the growth of Islamic banking in Nigeria and Africa.

Ali said, “Islamic banking is going to be of great benefit to Nigeria because Islamic banking is very simple. The principles themselves are very simple. It is something that can help SMEs and countries because we know that now a lot of countries are looking for fund, issuing suku in general.

“For commercial banking, a lot of countries are borrowing money from the capital market through bond. You can tap into the bigger market of Islamic Banking as many Muslim countries have a lot of funds to offer. In that way it can finance of the development of Nigeria.”

The Chief Executive Officer of Jaiz Islamic Bank, Abuja, Mr. Nuru Islam, who was represented by the bank’s Head of Research and Training, Mr. Mizanur Rahman, said that Islamic banking would curb corruption and assist to address infrastructural challenges in the country.

According to him, it will bridge the gap between the rich and the poor and help to reduce inflation.

The Vice Chancellor, Al-Hikhmah University, Prof. Abdulkareem Sulyman, said that to put a stop to the controversy on the significance of Islamic banking for national, regional and continental development in Africa, there was a need for re-orientation of government and the people on the basic tenets and practices of Islamic banking system.

“There have been controversies and misconceptions of the principles of workings of Islamic banking in Africa owing to the uncritical adoption nof modern (European) banking system that is exploitative and unholy in financial management.

“Numerous non-Islamic banks are notorious for their evil in credit facilities and administration of interest on loans.”

 

[Punch]

One Comment

  1. Skubedo

    January 8, 2015 at 2:40 pm

    Islamic banking is bullshit rubbish and none sense for bokoharam and jihadist fanatics. This backward form of banking should be eradicated immediately.