Islamic Banking and Finance in Nigeria: Exploration of its Opportunities and Challenges.

Abstract

Islamic Banking and Finance refers to a system where by all its activities are consistent with the principles of Shari’ah, as well as its practical application through the development of Islamic economics. It is a globally emerging trends nowadays especially in Muslim majority nations. Countries such as Egypt, Sudan, Malaysia, and United Arab Emirates are now claiming to be its hub, even Britain is not left out in proclaiming to be one of Islamic banking and finance hub. Recently, Nigeria, the most populated nation in Africa joined other countries of the world that are practicing Islamic banking and finance partially or wholly. The declaration to establish Islamic banking and finance in Nigeria by its Apex bank (Central Bank of Nigeria, CBN) generated a lot of issues among the citizens which comprise of different ethnics, religions and cultures. This paper aims to expose some of these issues in terms of challenges and opportunities and at the end provide possible solution to the dilemma. The paper utilizes descriptive approach of qualitative research methodology which rely on secondary data inform of text books, journals, newspapers, relative websites and so on.