New Rules, Products lay groundwork for Nigeria Islamic Finance sector

Nigerian Islamic Finance Market

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Nigeria is gradually opening up to Islāmic finance, a move that could bring non-interest banking to over 80 million Muslims and develop one of Africa’s fastest-growing consumer and corporate banking sectors.

Nigeria, home to the largest Muslim population in sub-Saharan Africa,  is trying to establish itself as the African hub for Islāmic finance, which follows religious principles such as bans on interest and gambling.

In recent months, a string of regulatory initiatives have set the groundwork for products such as Islāmic bonds (sukuk), insurance (takaful) and interbank lending products, although there is still only a small number of local market participants.

“The potential is there but the market is negligible in Nigeria because we have only one Islāmic bank and one window-but it has potential to grow”, said Bashir Aliyu Umar, special adviser on non-interest banking to the central bank governor.

Islāmic banking is currently offered by the Islāmic window of Stanbic IBTC, a unit of South Africa’s Standard bank and Jaiz bank…

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About sahriskmanager

I have worked as a Head of Risk and a risk culture builder at both Asset Management and Commercial Banking Institutions within and outside of Pakistan. Over the years I have developed exhaustive understanding of risks that exist in both Sharia and Conventional Finance related Investments and Financing/Lending Products. I have invaluable experiences to share with respect to setting up and restructuring of Financial Risk Management Departments at Islamic Banks and Asset Management Firms . This includes developing policy and procedure manuals, recruiting of staff, imparting Risk Trainings and preparing the entire SDI (System, Design & Installation) work-flow frameworks for the department itself. What I shall post on these blog pages are my personal experiences, global risk management issues and academic interests which I would like to share with academicians, students and practitioners of FRM - Financial Risk Management all over the world.
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