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Religious Challenges of Islamic Banking in Nigeria

Author

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  • Muzammilu Yunusa
  • Nadhira Bint Nordin

Abstract

Nigeria is Africa’s most populous country; more than 50% of its total population of well over 170 million people is Muslims. Majority Nigeria’s citizens are living below the poverty line mainly due to the problem of financial inclusion. The central bank of Nigeria attempted to increase the financial inclusion so as to curve the problem of liquidity management and also reduce the gap between the have and have not. Islamic banking becomes a better alternative because of its prohibition of interest and profit and loss sharing principles. The introduced Islamic bank has been confronted with a number of challenges that are religiously based. Descriptive method has been adopted in this paper to outline these challenges and enumerate on their causative factors. The paper concludes that serious measures are to be taken to make improvement and to proffers way out to the challenges.

Suggested Citation

  • Muzammilu Yunusa & Nadhira Bint Nordin, 2015. "Religious Challenges of Islamic Banking in Nigeria," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(4), pages 46-66, April.
    • Handle: RePEc:hur:ijarbs:v:5:y:2015:i:4:p:46-66
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    References listed on IDEAS

    as
    1. Mohamed Ariff & Munawar Iqbal, 2011. "Introduction to Islamic Financial Institutions," Chapters, in: Mohamed Ariff & Munawar Iqbal (ed.), The Foundations of Islamic Banking, chapter 1, Edward Elgar Publishing.
    2. Volker Nienhaus, 1983. "Profitability of Islamic PLS Banks Competing with Interest Banks: Problems and Prospects ربحية البنوك الإسلامية المشاركة في المنافسة مع البنوك ذات الفائدة: المشاكل والآفاق," Journal of Research in Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 1(1), pages 31-39, January.
    3. repec:abd:kauiea:oldjournal:v:1:y:1983:i:1:no:3:p:31-39 is not listed on IDEAS
    4. Aliyu, Shehu Usman Rano, 2012. "Islamic banking and finance in Nigeria: issues, challenges and opportunities," MPRA Paper 42573, University Library of Munich, Germany, revised 05 Nov 2012.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Bashir Baba & Shafie Mohamed Zabri & Ahmad Kaseri, 2018. "Assessing the Influence of Islamic Banks' Products' Quality Features on Customer Satisfaction in Nigeria," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 4(6), pages 4001-4015, June.
    2. Sasho Kozuharov & Jana Ilieva & Natasha Ristovska, 2017. "Islamic Banking and its Perspectives," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(2), pages 167-177, February.

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