Nigeria media urged to encourage Islamic banking

Dutsinma

The Nigerian media is currently being sensitized on the need to encourage Islamic banking in the country by letting Nigerians know that it is more beneficial to them than conventional banking as it operates interest free loans.

Leading the sensitization drive is the Islamic Banking and Finance Institute Nigeria (IBFIN) through its MD/CEO, Sani Aminu Dutsinma, in partnership with the Nigeria Union of Journalists (NUJ).

According to Dutsinma: “IBFIN believes creating public awareness is one of the key ingredients for achieving a smooth rollout of Islamic financial institutions in Nigeria. And there is no better place to begin than with journalists.

“Islamic finance industry has expanded rapidly over the past few decades, growing at 10 – 20% annually. There is increased interest in Islamic finance from countries such as the UK, Luxembourg, South Africa, and Hong Kong. Within sub-Saharan Africa, South Africa leads the way with one of the largest international Islamic banking conglomerates, Al-Baraka Banking Group.”

Pointing out that Islamic banking is not a ploy to Islamise Nigeria, he said, “Since the introduction of Islamic finance in Nigeria some 18 years ago, concerns and apprehensions have been voiced that it might be a ploy to Islamise Nigeria. However, as at today, we are yet to receive any report of religious discrimination as regards access to any Sharia-compliant products or services.

“Islamic finance is not reserved for Muslims only, either in Nigeria or any other part of the world. It is high time Nigerian policy makers recognized Islamic finance can significantly contribute to economic development, given its direct link to physical assets and real economy. The use of profit-and-loss-sharing arrangements encourages the provision of financial support and generates jobs. And the emphasis on tangible assets ensures that the industry supports only transactions that serve a real purpose, thus discouraging financial speculation.”

Dutsinma made all this known at a sensitization workshop held at the Combo Hall of LTV 8, Agidingbi, Lagos, recently, and the speakers were himself, Waheed Odusile; Deji Elumoye; Dr Olatoye Karim, senior lecturer, faculty of law, Lagos State University; and Dr Abdulqadir Ibrahim Abikan, a solicitor of the Supreme Court of Nigeria.

While speaking, Odusile confirmed that Islamic banking is having problems in properly operating in Nigeria, saying, “This workshop has come at a very important period because of the various controversies surrounding Islamic banking in the country so we are happy to be in Lagos, the business capital of Nigeria to discuss Islamic banking fundamentals with the hope that journalists will become better informed about it and thereby be greatly enriched so that society can in turn benefit immensely.

“The journalist occupies a central position in any media organization against the background of his professional responsibility. This role is more vividly understood when it is realized that the mass media offers the widest and fastest means of disseminating information.

“The media provides a free platform for contending groups to express opinions or canvass support, especially in a multi-party democracy. In this regard, it should be noted that the contest for dominance is highly intense and journalists, more often, determine which opinion predominates. This explains why the NUJ entered into this collaboration with IBFIN to provide a platform for journalists and other stakeholders to acquire a better understanding of what actually Islamic banking is.”

Speaking on the topic, Islamic Economics and its World View, Olatoye described Islamic economics as the science of how man uses his resources according to a predetermined code.

"It protects the interest of the deprived and oppressed and promotes the welfare of people by ensuring equal distribution of wealth," he said.

He added that Islamic banking is a viable alternative to conventional banking which charges a lot of interest on loans while IB operates on a profit and loss basis which means that if the borrower makes money on his business, the Islamic banker gets his own percentage but if the borrower loses, then they lose together.

Concluding, he said, "Though Islamic banking is premised on Islamic economics which is based on Sharia prescriptions, it's also guided by the laws of the state it operates in."

According to IBFIN: “Islamic economics is becoming more prominent throughout governments and financial institutions and businesses of the world. It’s growing from a niche industry to a mainstream part of finance. The viability and profitability of Islamic banking and finance is no longer in doubt the world over.

“Non-interest (Islamic) banking in particular and Islamic finance in general has a significant role to play in the economic growth of Nigeria, as it does in other nations, and it has a role to play in developing Nigeria’s economy.”