INTEREST FREE BANKING IN NIGERIA—THE UNFINISHED BUSINESS

Abstract

This paper provokes a re-visit of the decision, by the Central Bank of Nigeria (CBN), to establish interest-Free Islamic Banking in Nigeria, against the backdrop of the country’s status as a secular State. It notes that the only difference between an Islamic Bank and a conventional Bank is that the latter charges interest, while the former does not; and that  the findings of various empirical studies  indicate that Nigeria has a fertile financial environment for interest free banking to thrive. However, its religious colouring, which was the subject of the raging controversy that followed its initial announcement, is a constraint to its availability to non-Muslim Nigerians. Hence, it is an unfinished business that require formulation of new guidelines, to enable formation of non interest banks for the benefit of non Muslim Nigerians.                                                                                                                                              

Keywords: CBN, Christian Precepts, Interest Free Banking, Non-Muslim Nigerians

Unique Article ID: IJDES-144

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