The Legality of Islamic Banking in Nigeria: A Critical Approach

Olayemi, Abdul Azeez Maruf

doi:10.2139/ssrn.1941010

Cited by 10 publications

(7 citation statements)

References 6 publications

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“…Consequently, Adebayo and Hassan (2013) put forth that Islamic financial institutions in Nigeria are expected to go through both legal and operational problems otherwise the present banking laws need to have undergone amendment or else the Islamic financial institutions will have to be let off. Similarly, Olayemi (2011) discourses that the introduction of the Islamic banking products into the Nigeria banking system is lawful and it is a benefit to the country abounds. Interestingly, Adam (2014) opines that it is compulsory to provide a legal and institutional framework to facilitate appropriate transactions in Islamic banks based on Maqasid al-Shari'ah.…”

Section: Effective Legal System For Inclusive Islamic Financementioning

confidence: 99%

Realising financial inclusion in Islamic finance

Shinkafi

Yahaya

Sani

2019

JIMA

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Purpose The purpose of this paper is to evolve a theoretical account that highlights the determinations for achieving financial inclusion in Islamic finance. Design/methodology/approach The methodology used is a library approach where the existing and relevant document remains the sources of concern. Findings The outcome of the study designates that robust technology; microcredit and microfinance services; legal and regulatory commitment of the regulators and policymakers of the Islamic financial institutions; extensive public awareness of Islamic financial services and products; financial proficiency and literacy; and financial infrastructure are some of the imperative drives for realising financial inclusion particularly for women, low income earners and rural poor. Research limitations/implications The paper limited itself to realising financial inclusion in Islamic finance. Thus, anything beyond the stated limitation is outside the scope of our objective. The paper has an inference for the concerned professional bodies, regulators, policymakers, stakeholders and practitioners of Islamic financial institutions. Originality/value The paper is original in its nature, it is also a pearl and a reference to those who may conceive and cherish the relevance of its capacity.

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Section: Effective Legal System For Inclusive Islamic Financementioning

confidence: 99%

Realising financial inclusion in Islamic finance

Shinkafi

Yahaya

Sani

2019

JIMA

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“…In fact, the absence of some important provisions in these legislations might have only positioned Islamic banking in a mere dream in the context of Nigeria. The reality is that section 61 of BOFIA (1991) reveals non-interest financial method as a recognized pattern under the Nigeria financial system (Olayemi, 2011).…”

Section: Discussionmentioning

confidence: 99%

Laws of Islamic Banking in Nigeria: Critical Review and Best Practice Proposal

El-Mubarak¹,

Mustapha²,

Mohamed³

et al. 2020

IJARBSS

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Strength of a regulatory regime could be discerned from progress in a concept(s) it seeks to implement and govern. Islamic banking (IB) is a concept practiced in Nigeria under conventional banking regulatory laws. The conventional laws are however not particularly meant for Islamic banking, a fact that leaves much to be desired for Islamic banking practice. A large Nigerian muslims population desirous of Islamic banking services has provided Islamic banking with supportive client base in the country. Regulatory laws have provided for Islamic banking and finance to be integrated into existing conventional system in countries with less muslims population like the UK and US. In light of this, the establishment of Islamic banking under the Nigerian conventional banking laws is critically examined in the light of Malaysian jurisdiction. Banks and other Financial Institutions Act (BOFIA) 1991, the principal Nigerian banking legislation, merely provides for non-interest banking to operate across the country which a non-interest bank known as Jaiz Bank International Plc was licensed. This study examines BOFIA and other regulations applicable to Islamic finance business and institutions in Nigeria. The study adopts a narrative review approach to deduce and examine lacunae inefficacious to successfully drive IBF practice. Thus, suitable establishment and regulatory laws are needed to enhance IB practice, ensure its equal treatment like the conventional banking system and sustain its operations and institutions in Nigeria. Accordingly, it is recommended that extant laws and institutions be appropriately amended borrowing a leaf from Malaysian and align Nigerian legal regime on IB with global and standard best practice.

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“…Researchers [65] stressed that the need for proper sensitization and educating the Nigerian populace to enable them distinctly demarcate between the provision draft and real Islamic paradigm of banking. Authors [41] also revealed that the three important selection criteria perceived and used by Muslim customers in Malaysia when selecting their banks were personal friendliness, provision of a fast and efficient survive and the speed to traction.…”

Section: Empirical Studiesmentioning

confidence: 99%

Evaluating the Customer Satisfaction’s Effect on Murabahah and Mudarabah Financing in Islamic Banking

Baba

Zabri

Ramin

2019

PoS

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There are a considerable number of studies on the service quality dimensions of banking industries, but little researches were carried out on the product quality dimensions, and this led to the minimal understanding of the impact of product quality dimensions from the customers' standpoints, This research sought to identify the impact Islamic banking products (Murabahah and Mudarabah) dimensions on customer satisfaction. The study surveyed Islamic bank customers (users of the Islamic bank's products in Nigeria) using questionnaires to seek responses, a convenient sampling technique was conducted to reach out to customers, and the use of PLS-SEM 3 was employed for the analysis of the data. The result model shows an R 2 value of 0.414 (for Murabahah), which means 41 % of the variance in customer satisfaction is explained by the exogenous constructs of perceived quality, cost, convenience and compliance of Murabahah, and R 2 value of 0.309 (for Mudarabah) which means 31 % of the variance in customer satisfaction is explained by the exogenous constructs of perceived quality, cost, convenience and compliance of Mudarabah. The values of R 2 for Murabahah and Mudarabah show that the constructs were moderate in determining the satisfaction level of customers as they produced 0.414 and 0.309 respectively.

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The Legality of Islamic Banking in Nigeria: A Critical Approach

Cited by 10 publications

References 6 publications

Realising financial inclusion in Islamic finance

Realising financial inclusion in Islamic finance

Laws of Islamic Banking in Nigeria: Critical Review and Best Practice Proposal

Evaluating the Customer Satisfaction’s Effect on Murabahah and Mudarabah Financing in Islamic Banking

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