Islamic banking in Nigeria: Problems and prospects

The launching of Islamic Banking in Nigeria has generated a lot of issues from some eminent Nigerians. Owing to this a research study on the issue is necessary. This paper therefore examines the problems and prospects of Islamic Banking in Nigeria and the likely challenges based on the experiences of other nations. The research method employed was that of personal interviews from Islamic Scholars, Pastors and University students. Lagos state became a focus because it is a state that is highly dominated by Muslims and Christians. Published Public opinions emanating from National Dailies were used.

The research findings based on the research questions revealed that Islamic Banking will improve the economy of the country, accelerate the growth of small and medium scale enterprises as well as eliminate the exploitation inherent in the conventional Banking system. The research further revealed that Islamic Banking will not Islamitize Nigeria and that it will no doubt increase our societal values. However, the major challenges that Nigeria is likely to face is that of a competent Shariah Supervisory Board (religious Board that will certify Banking products as Shariah compliant. The research is of the opinion that Islamic Banking should be allowed to operate in Nigeria because such a Banking practice will usher in credit choice among the people.