[size=15pt]Jonathan shuns talks on Islamic banking. •Only court can stop us —Sanusi[/size]

Published on 05 July 2011

CLEMENT NWOJI, Abuja





President Goodluck Jonathan yesterday shunned the parley organised by the Central Bank of Nigeria (CBN) on Islamic banking.

This was as CBN governor, Mallam Lamido Sanusi dammed the series of criticisms which have greeted his recent moves to establish Islamic banking in the country, saying that only court can stop him from going ahead with it.

An indication of President Goodluck Jonathan not wanting to be associated with the controversy of the Islamic banking and its variant model played out yesterday as he declined to either be physically present or send a representative to deliver a keynote address as scheduled at the International Conference on Non-Interest (Islamic) banking in Abuja.

Also, the Permanent Secretary, Ministry of Finance, Mr Daniel Kifasi who was hurriedly co-opted by the CBN Governor to deliver the President’s speech even openly denied representing the President.

In his remarks, Kifasi denied that he was representing the President, explaining that he made efforts to get clarifications from the President but was locked out of the Villa gate.

However, Sanusi took time to trace the evolution of non-interest Islamic banking in the country, citing specifically that, in addition to Jaiz International Bank that had applied for and obtained CBN approval in principle to operate non-interest Islamic banking with regional authorisation in the country, other banks that have indicated interest to open Islamic banking windows include, Stanbic IBTC Bank Limited and Standard Chartered Bank Limited.

But against the spate of criticisms, the CBN Governor said "Anybody who feels Islamic banking is illegal should go to a court of law because it is the only institution that decides if something is illegal or not.

"If the court says it is illegal, we will stop it. But we don’t think the court will say so because we know it is constitutional and within the realm of the law."

He said whereas Stanbic IBTC Bank Limited had actually applied to the CBN to be given an approval in principle to operate an Islamic banking window, Standard Chartered Bank has informed the governor of its intention to submit an application to also open an Islamic banking window in the near future.

He traced the genesis of the Islamic banking saying: "The first major effort to operate Islamic banking services in Nigeria was in 1996 when the then Habib Bank sought and obtained CBN approval to operate Islamic banking model.

"Another application was received in 2007, when the CBN granted operational licence in principle to Jaiz International Bank to operate as a full-fledged non-interest banking institution. Unfortunately, the bank could not take off due to introduction of new capital requirements by the CBN.

"However, following the release of the new banking model in Nigeria, the proposed bank re-applied to CBN for a licence to operate as a non-interest Islamic bank with regional authorisation.

"The bank has been given an approval in principle and is expected to comply with the requirements for the grant of final licence to commence operations before the end of December. Also, Stanbic IBTC, a conventional bank, has applied and I am pleased to announce that it has been given an approval in principle to operate an Islamic banking window.

"Other prospective promoters and banks have also indicated interest to operate Islamic banks or windows and offer interest-free products and services. Indeed, Standard Chartered Bank has informed the Governor of its intention to submit an application to also open an Islamic banking window in the near future."

Also speaking, the Deputy Governor, Financial Systems Stability (FSS) of the CBN, Dr. Kingsley Muoghalu said the CBN had approached the Islamic Development Bank (IDB) for capacity building and technical assistance towards the realisation of an Islamic banking culture in Nigeria.

He said the idea of approaching IDB was predicated on the fact that Nigeria lacked the skills, legal and technical competences to operate Islamic banking earlier in the years.

Moghalu said non-interest banking has over $1 trillion in global assets and is growing at a rate of 15 to 20 per cent annually.

He said Nigeria decided to operate non-interest banking based on the fact that about 56 per cent of adult Nigerians are un-banked and there was the need to bring this number of Nigerians into the nation’s financial system.

Non-interest banking has undergone progressive evolution in the last four decades to become a dynamic and a new form of financial intermediation in the global financial system. It is being operated in about 475 institutions in at least 75 countries around the world, including major financial markets like London, Malaysia, Singapore and Hong Kong.

The appeal of this banking model comprise of introduction of diverse financial products and services, progressive in development and regulatory guidelines etc.


http://www.champion.com.ng/displaycontent.asp?pid=9845

Just when you will expect leadership. If our president thinks it a bad Idea, he could use the opportunity to stop it.

If its a good one use the same opportunity to calm the anxiety across the nation. But instead he avoids it, Why? Simple, he wants to please everyone.

egift:

Just when you will expect leadership. If our president thinks it a bad Idea, he could use the opportunity to stop it.

If its a good one use the same opportunity to calm the anxiety across the nation. But instead he avoids it, Why? Simple, he wants to please everyone.

So you want him to commit political suicide? Do you know how many such bullets Obama has been dodging?
It is good he did not attend. Hopefully as soon as Sanusi's term is over (I believe GEJ will not nominate him for renewal), the Sharia banking nonsense will be door-knob dead.

Stanbic IBTC and other banks are already with license to run this non-interest banking (Islamic Banking). If sucessful, how will Oga Presido force those business to close shop.

We may even have a situation where some of these other existing banks may grab a license and run a service of such in order to consolidate their customer base. Just like they do with Insurance services.

As I stated earlier our President needs to act (stopping it if its a bad policy or support it if its good for us). Our problems will not solve themselves with time - Nigeria, as a ship, Needs A Captain - not a reactor.

This was a smart move for Jonathan. .

When will Sanusi's term expire?

Yes. GEJ wants the public debate on it to be concluded before drawing the final conclusion on it. So, let the debate go on.

On my own part, I am not against an interest free banking, I am against tagging it "ISLAMIC" banking. Must it be "ISLAMIC" before it can give interest free loan? Our NAPEP is underfunded. Our Bank of Industries is there. Why not pump money into these and other developmental and welfare outfits. In fact, some NGOS and existing banks can be selected and funded to handle interest free banking.

I seriously distaste the religious connotation to the whole idea.

Somebody (Piss Be Upon Him) married a 6 yr old girl and consummated the marriage when she was only 9. Today, a lot of people aspire to be like him.

Yes. GEJ wants the public debate on it to be concluded before drawing the final conclusion on it. So, let the debate go on.

On my own part, I am not against an interest free banking, I am against tagging it "ISLAMIC" banking. Must it be "ISLAMIC" before it can give interest free loan? Our NAPEP is underfunded. Our Bank of Industries is there. Why not pump money into these and other developmental and welfare outfits. In fact, some NGOS and existing banks can be selected and funded to handle interest free banking.

I seriously distaste  the religious connotation to the whole idea.

I wonder o. Infact, there is no evidence to suggest that the Islamic banking has contributed to the advancement of any country.What we hear is that islamic banking has assets in trillions.All countries practicing the Islamic banking are very poor.So, whats the benefit in Nigeria?

Anybody knows the relationship between Sanusi and Mutallab the shoe bomber and his father

only tym wl tel. islamic bankn in Nigeria cannt stand d test of tym.Sanusi shld luk somwhr else. gosh! i evn hrd he wants 2 establish CBN POULTRY FARM!!!!!!!!!!!!!!!

Chyz*:

[size=15pt]Jonathan shuns talks on Islamic banking. •Only court can stop us —Sanusi[/size]

Published on 05 July 2011

CLEMENT NWOJI, Abuja





President Goodluck Jonathan yesterday shunned the parley organised by the Central Bank of Nigeria (CBN) on Islamic banking.

This was as CBN governor, Mallam Lamido Sanusi dammed the series of criticisms which have greeted his recent moves to establish Islamic banking in the country, saying that only court can stop him from going ahead with it.

An indication of President Goodluck Jonathan not wanting to be associated with the controversy of the Islamic banking and its variant model played out yesterday as he declined to either be physically present or send a representative to deliver a keynote address as scheduled at the International Conference on Non-Interest (Islamic) banking in Abuja.

Also, the Permanent Secretary, Ministry of Finance, Mr Daniel Kifasi who was hurriedly co-opted by the CBN Governor to deliver the President’s speech even openly denied representing the President.

In his remarks, Kifasi denied that he was representing the President, explaining that he made efforts to get clarifications from the President but was locked out of the Villa gate.

However, Sanusi took time to trace the evolution of non-interest Islamic banking in the country, citing specifically that, in addition to Jaiz International Bank that had applied for and obtained CBN approval in principle to operate non-interest Islamic banking with regional authorisation in the country, other banks that have indicated interest to open Islamic banking windows include, Stanbic IBTC Bank Limited and Standard Chartered Bank Limited.

But against the spate of criticisms, the CBN Governor said "Anybody who feels Islamic banking is illegal should go to a court of law because it is the only institution that decides if something is illegal or not.

"If the court says it is illegal, we will stop it. But we don’t think the court will say so because we know it is constitutional and within the realm of the law."

He said whereas Stanbic IBTC Bank Limited had actually applied to the CBN to be given an approval in principle to operate an Islamic banking window, Standard Chartered Bank has informed the governor of its intention to submit an application to also open an Islamic banking window in the near future.

He traced the genesis of the Islamic banking saying: "The first major effort to operate Islamic banking services in Nigeria was in 1996 when the then Habib Bank sought and obtained CBN approval to operate Islamic banking model.

"Another application was received in 2007, when the CBN granted operational licence in principle to Jaiz International Bank to operate as a full-fledged non-interest banking institution. Unfortunately, the bank could not take off due to introduction of new capital requirements by the CBN.

"However, following the release of the new banking model in Nigeria, the proposed bank re-applied to CBN for a licence to operate as a non-interest Islamic bank with regional authorisation.

"The bank has been given an approval in principle and is expected to comply with the requirements for the grant of final licence to commence operations before the end of December. Also, Stanbic IBTC, a conventional bank, has applied and I am pleased to announce that it has been given an approval in principle to operate an Islamic banking window.

"Other prospective promoters and banks have also indicated interest to operate Islamic banks or windows and offer interest-free products and services. Indeed, Standard Chartered Bank has informed the Governor of its intention to submit an application to also open an Islamic banking window in the near future."

Also speaking, the Deputy Governor, Financial Systems Stability (FSS) of the CBN, Dr. Kingsley Muoghalu said the CBN had approached the Islamic Development Bank (IDB) for capacity building and technical assistance towards the realisation of an Islamic banking culture in Nigeria.

He said the idea of approaching IDB was predicated on the fact that Nigeria lacked the skills, legal and technical competences to operate Islamic banking earlier in the years.

Moghalu said non-interest banking has over $1 trillion in global assets and is growing at a rate of 15 to 20 per cent annually.

He said Nigeria decided to operate non-interest banking based on the fact that about 56 per cent of adult Nigerians are un-banked and there was the need to bring this number of Nigerians into the nation’s financial system.

Non-interest banking has undergone progressive evolution in the last four decades to become a dynamic and a new form of financial intermediation in the global financial system. It is being operated in about 475 institutions in at least 75 countries around the world, including major financial markets like London, Malaysia, Singapore and Hong Kong.

The appeal of this banking model comprise of introduction of diverse financial products and services, progressive in development and regulatory guidelines etc.


http://www.champion.com.ng/displaycontent.asp?pid=9845

So why is these bigot called CBN governor making noise, since he has made up his mind.

Let carry on his Muslim brethren are with behind him.

This one na suicide bomber banking

He did the right thing on this one. By the way, most of the problems he has now has an element of Islam in it.

My Preso is waiting for the swearing-in ceremony of his 15 newly-minted Special Advisers. Until then, Naija is in a state of suspension.

ak47mann:

This one na suicide bomber banking

lmao

Seun:

When will Sanusi's term expire?

Sanusi was appointed on the 3rd of June 2009 & his tenure is to run for 5 years in the first instance & subject to renewal based on the discretion of the president

@ cold:
So what you wanaa do? Kiss a live electic wire?

Nothing wrong with islamic banking window. Let those who wants Ȋ̝̊̅† go for Ȋ̝̊̅† and those who needs interest opt for Ȋ̝̊̅†. It'§ ​№ big deal and i wonder why everyone is whining . Nothing wrong with islamic banking window. Let those who wants Ȋ̝̊̅† go for Ȋ̝̊̅† and those who needs interest opt for Ȋ̝̊̅†. It'§ ​№ big deal and i wonder why everyone is whining .

Why should IBTC and Standard Chartered apply for Islamic windows from CBN? Are their current windows broken? When did CBN become Carpentry Bank of Nigeria? They could as well apply for Islamic doors.

On Non-interest banking, Dr Ngozi said from what she knows, she thinks Non-interest Banking is just another form of Banking whereby instead of the Investors getting interests on Loans offered, the Borrower and Lender share the Profits.
She said we should put emotions aside and look at it objectively. that countries that practice this are doing very well at it in addition to other types of banking.


pls lets stop all the noise about islamic banking/non- interest banking.
How many people have read the CBN modus operandi. I am dissappointed that even Bishop Okogie joined such noisemaking.
Islamic banking is just a form of non-interest banking and any body can have access to it.
I am a born-again christian and I would not bat an eyelid before taking a loan from an Islamic bank.

Let me ask a Question here as stupid as it might sound?
But what is islamic banking? Does it aid the ordinary man in securing loan? is the interest rate fair or free? if the answer is positive then why bash it,i think the lots of us here have an issue with the word "Islamic",why is it because you feel Islam represents Violence,but am sorry you Christains too also have your fair share of blood.Be Objective,

interest loans kill so many businesses. Now, we want to have a non interest bank, u are complaining bitterly b'cos it is from muslims. We have serious problems in this country. Someone even said they are not doing well in countries they operate. Make ur reseach well. Someone is complaining about the name, why? U have full right to give any name to ur company, bank, biz etc if it has not been used by other. Constitutionally, they can't  deny u that right. If they could have Islamic Banking of Britain(IBB), what is wrong with Jaiz International Bank? Do we know more than British? Of what -ve effect is this bank to Nigeria? Since we are in a Secular state, why can't muslims have a non Interest bank that their support when we have 25 interest banks with lots of micro finance banks.
Lets give it a trial, if it fails then u can say whatever u like.
Sanusi Lamido u have done well on this and sain persons can kick against it.

Am a christian, and would welcome a loan that i wont pay interest on, but as a poster rightly said, knowing a secular country like ours sanusi should not bring religious coloration to it, by labelling it 'islamic banking', but he could call it jaiz or even muttalab intl bank(cos mutallab d suicide bomber's dad is on d mngt board, yes for real!) this is my take on it. Asalam alakum!

deadie:

Somebody (Piss Be Upon Him) married a 6 yr old girl and consummated the marriage when she was only 9. Today, a lot of people aspire to be like him.

funny as it may sound, dis man's way of life while alive should get any serious minded muslim as to why they want to follow him. Seriously, I wouldnt choose someone that married several wives(even a kid girl) as my role model if it were to be dis days or even then. No offences meant. But 'honest' muslims have a lot of PR work to do, cos i cant imagine even a fool embracing islam with d violent attitude of dis her followers!

The only reason why this bank whatever name you wanna call it is raising so much dust is because of the animosity & acrimony between the two major religious groups.The two warring groups have grown so intolerant of the other over the years that anything said or done by the other party is viewed with suspicion.Ordinarily,this bank would have been welcome with open arms in other countries but in a country that has witnessed some of the most gruesome & brutal murders,not to talk of wanton destruction of properties all in the name of Allah you can't blame the Christians for feeling the way they do about the establishment of this bank.
Furthermore,there are genuine fears in some quarters that this bank may become a conduit pipe for channelling funds to extremist groups such as Boko Haram & even Al Qaeda cells in the country.There's too much at stake here.

The opposition to Islamic Banking is a knee-jerk reaction by many brainless Nigerians, and several others that really should know better.

Take a look at nairaland whenever this Islamic banking is being discussed. Heck, take a look at this topic. Not one person here has even bothered to put out a logical and reasoned argument against Islamic banking.

We are fast turning into a nation of ninnies!

Instead of people to tackle their President for failing to protect Nigerians from Boko Haram they are busy abusing Sanusi.

This Moghalu guy no be christian?Na money dey push am to the mis yarn abi?Na ibo man sha.

texazzpete:

The opposition to Islamic Banking is a knee-jerk reaction by many brainless Nigerians, and several others that really should know better.
Take a look at nairaland whenever this Islamic banking is being discussed. Heck, take a look at this topic. Not one person here has even bothered to put out a logical and reasoned argument against Islamic banking.
We are fast turning into a nation of ninnies!
Instead of people to tackle their President for failing to protect Nigerians from Boko Haram they are busy abusing Sanusi.

I'd strongly urge you to restrain yourself & stop making 'brainless' comments.You sit in your little corner halfway round the globe & pontificate on issues you know next to nothing about.All these arm chair professors sef.If you've ever lost a loved one or had your house razed to the ground or that beautiful Range you worked so hard to buy set ablaze with you only managing to escape by the skin of your teeth you'd have a different impression when anything with the Islam appendage is mentioned.

My thinking is that for Sanusi to have granted the License in the first place, it means that Presidency is in the know and for Jonathan to have allowed it he meant good for the nation. Lets just be objective about this matter. I can assure you that if there is any ulterior motive behind it aside our economic growth, IT WILL SURELY FAIL AND FALL.  God bless Nigeria!

texazzpete:

The opposition to Islamic Banking is a knee-jerk reaction by many brainless Nigerians, and several others that really should know better.

Granted, it might be a knee jerk reaction but I take exception to the brainless part.
What else do you expect? A certain word is associated with wanton destruction and major hate & intolerance for all things different then a public servant takes that word and associates it with something very vital. The banking law already recognises Non Interest banking, why make noise about it and try to cause division?

Of course, I'd react negatively. What with all the rumours of Al Qaeda moving base to Nigeria, the evidence of Boko Haram.
Nigerians would add up 2+2 and get 22.

Me oh, I am afraid

my question still is, what exactly is wrong with islamic banking? the conventional banks we have dont give the necessary support to upcoming businesses, now we have a banking model that will do just that albiet sharing the profits with them. or is there some other 'under the cover issues' we do not know of?