Islamic banking and finance in Nigeria: issues, challenges and opportunities
AbstractWith increasing wave of popularity and successes of Islamic finance across the world, Nigeria aspires to be the hub of Islamic finance of Africa. The country, for instance, has an estimated population of over 170 million people, a strong banking industry and a highly receptive and agile capital market in the continent, its dream is about to become a reality. This is despite the strong appearance of South Africa and Kenya into the scene. Early this year, the Nigeria’s apex bank issued a license to Jaiz Bank Plc, to operate as a full-fledged non-interest financial institution (NIFI), while other conventional bank were allowed to open a non-interest banking window. Similarly, the Nigerian government intends to float its first sovereign sukuk before the end of this year. Accordingly, the Nigeria’s Stock Exchange (NSE) market has recently introduced as Islamic index – Lotus Islamic Index (LII) in line with global trends, to monitor performance of sharia’ah compliant assets. These developments, no doubt raised a number of critical issues, posed a number challenges to both operators, regulators and investors alike, as well as opened doors of opportunities for the country. This paper attempts to allay some of the thorny issues, proffers way out to some of the challenges and brings to fore some of the opportunities for the country.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 42573.
Date of creation: 26 Oct 2012
Date of revision: 05 Nov 2012
Islamic Banking and Finance; Capital market; Central Bank; Sukuk;
Find related papers by JEL classification:
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
This paper has been announced in the following NEP Reports:
- NEP-AFR-2012-11-24 (Africa)
- NEP-ALL-2012-11-24 (All new papers)
- NEP-CFN-2012-11-24 (Corporate Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mirakhor, Abbas & Zaidi, Iqbal, 1988. "Stabilization and Growth in an Open Islamic Economy," MPRA Paper 56003, University Library of Munich, Germany.
- Aliyu, Shehu Usman Rano, 2011. "Reactions of stock market to monetary policy shocks during the global financial crisis: the Nigerian case," MPRA Paper 35581, University Library of Munich, Germany, revised 28 Dec 2011.
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