The rapid growth in Islamic Finance has largely been linked to ‘high levels of liquidity and a growing sophistication in investment product’. Joseph Divanna and Antoine Spreih, authors of the book: “A New Financial Dawn: The Rise of Islamic Finance”, noted in 2009 that as trust in conventional markets continue to erode, Islamic finance as an industry is rapidly evolving into a viable alternative to conventional sources and forms of capital for Muslim and non-Muslim businesses.

While Islamic Finance is gaining rapid acceptance among non-Muslims (both Jews and Christians) all over the world, the case is quite different with Nigeria where many non-Muslims, because of blind prejudice and Islamophobia, see the efforts to institutionalize it as a move to Islamize the country. One of such people is Sam Onimisi who, in his article titled: “Sanusi & Sharia @ CBN” challenged the CBN boss of using his office to facilitate the use of “collective fund of Nigeria” to serve “as a weapon of a back door Islamization of the country”. Onimisi believes that Sanusi’s ‘innovation’ of attempting to establish a CBN Sharia Council to serve as an advisory board to guide the operation of “Sharia or Islamic Banking” is “bound to generate unnecessary agitation and bad blood”. He suggests that the issue of Islamic Banking should be left to the Nigeria Supreme Council for Islamic Affairs, while the CBN “should not be used for a religious jihad by some means”. Should Sharia Banking be supported, then its equivalent must be provided for Christians to avoid crisis, he said. After raising a lot of alarm, the writer concludes that: “I am not in position to judge the value of Sanusi’s reforms in the Banking sector or its beneficial effects on the national economy, but a discerning mind should be able to smell a religious bomb in the process of detonation at the Central Bank of Nigeria”.

My focus in this piece is to highlight some issues about the reality of Islamic Finance as a global phenomenon so that the “discerning mind” will not raise “unnecessary agitation” and fear about its institutionalization in Nigeria.

Firstly, the basic principles of Islamic Finance such as the prohibition of Riba (interest), are not only confined to the teachings of Islam, but are universally accepted ethical values that ensure financial justice and equity in society. (Of course, Islamic Finance is beyond interest-free banking). Like the Glorious Qur’an, the Holy Bible is categorical in prohibiting Riba much as it also prohibits other forms of injustice in financial dealings. It is this fact, coupled with the high rate of profitability apparent in Islamic financial products, which has attracted many non-Muslims to study, specialize and practice Islamic Finance all over the world. Having realized what is in it for them in terms of lucrative return, many conventional banks rush to open Islamic banking windows, whereas some establish fresh Shariah-compliant banks and financial institutions.

In 2010, Mohammed Ali Qayyum, Director General of the  London – based Institute of Islamic Banking and Insurance (IIBI) explained how the 20 year old IIBI has attracted students from over 80 countries. He states: “Many of our Students are non-Muslims. They are attracted to the moral code that governs Islamic Finance and to its ethical basis – the avoidance of interest; the avoidance of links to prohibited activities like speculation, gambling and alcohol and the fact that it must be used for a productive purpose, rather than for the generation of money for its own sake. Such prohibitions are not unique to Islam. Throughout history, people have endeavoured to create a fair and prosperous economic system, based on the bedrock of certain core human values…. ”

Islamic Finance has since become a reliable industry that is seen as a strong engine of economic development and prosperity. Many do not see it as a religious institution but as a viable option to the unjust conventional system. It is this fair understanding that led to the emergence, as at 2003, of six Islamic Banks in Bahrain, 25 in Bangladesh, three in British Virgin Islands, one in Canada, 10 in France, one in The Gambia, one in Germany, one in Guinea, one in India, 12 in Iraq, one in Italy, one in Mauritania, one in Netherlands, two in Niger, one in Nigeria (yet to start proper operations), five in Palestine, one in Russia, one in Sri Lanka, 30 in Sudan, four in Switzerland, six in Turkey, seven in United Arab Emirate, 21 in United Kingdom, 16 in USA and five in Yemen among others. It was even reported that by around 2009, most banks in Switzerland had opened Islamic Financial Windows.

In Kenya, an East African country with only an official figure of 11% Muslim population(or 30% as argued by the Kenyan Muslim leaders), there are “eight financial institutions offering Shari’ah-compliant products. Among them are Islamic banks licensed by the Central Bank of Kenya (CBK)”. In fact, despite their minority Muslim population, Kenya has the ambition of becoming the ‘regional Islamic finance hub’ and that was why the CBK ‘had to make adjustments to some of its regulations to accommodate Islamic banking.’ The CBK also plans to ‘launch Shari’ah-compliant treasury bills in the money market.’

The question now is: why do some non-Muslims in Nigeria (a country that has at least 60% Muslim population) see it as a taboo for the CBN to license Islamic or Shari’ah-compliant banks when in countries like Kenya (with 11% Muslim population) and South-Africa (with about 2.5% Muslim population or thereabout) the Central Bank is not only supporting but even promotes it? Why not also in Nigeria if the UK would approve the establishment of 21 Islamic Banks? Why not we copy from America that has not seen any problem with licensing over 16 Islamic Banks? Why will government of Singapore (with a minority Muslim population) launch “an S$200m (US$134m ) Shariah-compliant sovereign sukuk (roughly translated as Islamic Insurance) designed specifically to attract foreign direct investment and to establish Singapore as an emerging regional centre for Islamic Finance” when Nigeria sees Islamic Finance as something that can lead to bloodshed? Why shall we have problem with Islamic Finance if President Sarkozy and indeed the government of France will allow the use of the rules of Islamic Finance?

The fact is that in Nigeria, our naivety and blind prejudice have always closed our eyes from seeing reason in tolerating anything related to religions or tribes other than ours. Most Christians see anything Islamic as evil, and many Muslims erroneously believe that Christianity or Christians can never present anything good to the world. Many people see whatever comes from other religions as a threat not only to their faith, but in most cases even to their survival. But the truth is that in a pluralistic society like ours. we must be ready to open our minds to accommodate anything good that will collectively benefit our society.

Lamido wrote from Alqahira Quarters, Gombe