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A Case for Non Interest Banking in Nigeria amidst the Collapsing Paradigms in the Global Economy

Author

Listed:
  • Lionel Effiom
  • Peter Samuel Ubi
  • Emmanuel O. Okon

Abstract

This paper argues for reconsideration and reevaluation of the underlying assumptions and paradigms of the world capitalist system in particular and that of economics in general. This is against the backdrop of an increasing discontent of majority of the world¡¯s people against the growing inequality between the rich and the poor. It contends that the genesis of the problem is rooted in the concept of the selfish, individuated economic man, which has fueled our appetite for greed, selfishness and unbridled primitive capitalist accumulation. Thus these clannish and narrow assumptions must be relaxed to bring in the more altruistic, non-material components of man. This new philosophy and concept of our economic man incidentally aligns with the principles of Islamic banking, a variant of non-interest banking. But it cautions that the imperatives of citizen education and a de-emphasis on religious sentiments are central to guaranteeing the success of the programme.

Suggested Citation

  • Lionel Effiom & Peter Samuel Ubi & Emmanuel O. Okon, 2012. "A Case for Non Interest Banking in Nigeria amidst the Collapsing Paradigms in the Global Economy," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 3(4), pages 20-30, July.
    • Handle: RePEc:jfr:ijba11:v:3:y:2012:i:4:p:20-30
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    References listed on IDEAS

    as
    1. Lewis, Peter & Stein, Howard, 1997. "Shifting fortunes: The political economy of financial liberalization in Nigeria," World Development, Elsevier, vol. 25(1), pages 5-22, January.
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    3. Douglas W. Diamond, 1984. "Financial Intermediation and Delegated Monitoring," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 51(3), pages 393-414.
    4. Martin BROWNBRIDGE, 1998. "The Causes Of Financial Distress In Local Banks In Africa And Implications For Prudential Policy," UNCTAD Discussion Papers 132, United Nations Conference on Trade and Development.
    5. Douglas Gale & Martin Hellwig, 1985. "Incentive-Compatible Debt Contracts: The One-Period Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(4), pages 647-663.
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