‘Why Islamic banking is growing in Nigeria’

The President, Supreme Council for Sharia in Nigeria (SCSN), Dr Bashir Aliyu Umar has said the rapid growth of Islamic banking and finance in Nigeria is due to its ability to provide solutions to financial crises without relying on interest or usury, which are forbidden in Islam. Speaking at a two‑day workshop organised by the […]

The President, Supreme Council for Sharia in Nigeria (SCSN), Dr Bashir Aliyu Umar has said the rapid growth of Islamic banking and finance in Nigeria is due to its ability to provide solutions to financial crises without relying on interest or usury, which are forbidden in Islam.

Speaking at a two‑day workshop organised by the Center for Quranic Studies, Bayero University Kano (BUK), Umar explained that Islamic banking has gradually expanded into a multi‑billion‑dollar industry, with five banks currently operating in the country.

The workshop themed: “Halal and Haram in Islamic Finance: Quranic Foundations, Contemporary Challenges and Future Prospects,” brought together over 250 stakeholders, including clerics and bankers from across northern Nigeria.

Bashir, who is also the Deputy Chairman of the Financial Regulation Advisory Council of Experts (FRACE), the body which advises the CBN on Islamic banking and non-interest financial institutions, said “Islamic finance is growing because it offers stability and fairness. Muslims are forbidden from taking interest, and the system provides alternatives that are in line with Sharia”.

He added that clerics have a crucial role in guiding banks, insurance firms, and stockbroking companies to ensure compliance with Islamic provisions.

BUK’s Vice Chancellor, Professor Haruna Musa, announced that Summit Bank had offered automatic employment to the two best graduating students, male and female, from the Islamic Banking and Finance department for five years.

He said the center, established in 2014, has the mandate of promoting Quranic teachings and will continue to receive support from the university.

Director of the center, Professor Ahmad Murtala, said the event was aimed at enlightening participants on Islamic jurisprudence in banking and finance.

He noted that the conference was supported by Jaiz Bank, Lotus Bank, Taj Bank, Nur Takaful and others.

 

“This is the biggest conference on Islamic banking and finance by any center in northern Nigeria. We hope to replicate it in other parts of the country,” he said.