[size=14pt]‘Islamic banking is Allah’s command’[/size]
By Tajudeen Adebanjo

Nigerian Muslims have been called upon to give Islamic banking all the needed support because it is the command of Almighty Allah.

This call was made by the Chairman, Joint Technical Committee, Lagos State Muslim Council (LSMC), Prof Tajudeen Gbadamosi during the 2011 Ramadan lecture organized by LSMC.

Speaking on the topic; “Islam and Contemporary Challenges”, Prof. Gbadamosi said that as five daily prayers, Hajj and fasting in this month are commands of Allah, so also is the issue of Islamic banking.

Quoting copiously from the Quran, the scholar reminded Muslims of Allah’s command that interest is forbidden and that those who are still charging and taking interest should be prepared for Allah’s wrath.

“Islam is a perfect, complete, comprehensive and divinely-chosen religion which is all-inclusive of the past, addresses the present and gives guidance about the future. It is for all people at all time and as Muslims, we are expected to submit ourselves wholly to Allah’s command,” he said.

Islam, he said, will always face challenges as it was done in the past because those whose past time is falsehood will not yield to truth easily.

He urged parents to give greater attention to quality education.

“Let us encourage our children not to stop academics at first degrees programme. All Islamic organisations should have long term plans aimed at encouraging quality education. In addition, there is no synergy between knowledge and good character among our children. Let us embark on integrating knowledge with good character and moral upbringing,” he said.

http://www.thenationonlineng.net/2011/index.php/news/15060-%E2%80%98islamic-banking-is-allah%E2%80%99s-command%E2%80%99.html

Allah forbids usury does not mean he approves or mandates Islamic banking.

This is just lack of thorough knowledge and depth of understanding in the precise command in the Shariah.

I suggest u guys read this, I hope you dont call him a fake christian or call the vatican a branch of mecca, ,,,, Please read

Negro_Ntns:

By Sam Omatseye

When I first heard of the issue of Islamic banking, I thought the words were misplaced. So I said Sanusi was merely referring to interest-free banking. In my reckoning, it was as much an Islamic thing as it was a Christian thing. The hoopla was therefore unnecessary.

But I had to look deeper. The fray intensified as nerves frayed across pious lines. The CBN boss, the boisterous and diminutive Sanusi, would not miss out on the theatre. If Sanusi does not meet with theatre, he would have to invent it. He loves the fight. He dares his opponents. Coming from a pedigree both colourful and austere, he wants to make a show in pursuit of old-fashioned ideas.

So, ancient and modern meet in the small man who has a lot of plunk and thunder. We should not forget that this man’s first love is not to be a CBN boss, however he seems to relish it. He wants to be the emir of Kano. That can come from a sense of revenge. His family lost out in the royal battle decades ago, and he feels a historic challenge to retrieve it. He would rather be a family hero than a national icon. Rather he has become celebrity as irritant.

So it is not surprising that he talks as though from a throne. He deploys poise, articulation, defiance, authority, a certain royal energy quite out of place with the aplomb persona of a central bank top shot. But Nigeria is a country where this sort can blossom. When Alan Greenspan shook the system in his day, it was on the quiet side. A Sanusi in America would mean a sort of professional suicide. It is only a man of Sanusi’s background though that can fell hefty bankers, play hero absent-mindedly and contradict himself and get away with it. He wants to cleanse the banks and later confesses cleansing the banks would not cleanse the economy. He is a contradiction of hubris in humility and humility in hubris. He abides the opposites. He wants to be at once regal and messianic, a revolutionary at war with himself.

So it is with Islamic banking. He explains the issue of Islamic banking as though it is only an economic issue. He does not mind riling the Christians. He does not care to reach out to them. He just wants to do his job.

Then you saw unrestrained goons like Datti Ahmed calling for war and another mullah with the Bible in Oritsejafor boasting as though we are in the years of The Crusades when Christians battled Muslims. In the rough-and-tumble of the debate, it is obvious no side is reasoning, and to use the cliché, we have a storm in a tea cup.

If you read the Bible well, you would realise that Christianity has nothing against the principle of Islamic banking. Usury in the Bible is sin. It is also sin in the Koran. So, it seems to me that the Oritsejafors of this world are opposing Islamic banking because they call it Islamic banking and because the bank would have a board of Sharia clerics to ensure the bank is faithful to its ideals. By opposing Islamic banking, they are supporting interests, the sin of capitalism. It is the supreme irony of clerics trying to go to war in defence of the worldly system. Friendship with the world, warns Paul in the Bible, is enmity with God.

Christendom did not go the way of the so-called modern banking until the collapse of the Holy Roman Empire, which at the end was neither holy nor Roman, according to historians. What emerged at the fall of Catholicism was what Max Weber designated as the spirit of capitalism. But that spirit came not from infidels but from Christians. A group of Christians called Calvinists redefined the attitude of the faithful and consequently the world and history. As Weber, a sociologist, explained it, the Calvinists wanted to turn the kind of devotion they had for God to the world. They defined this in terms of work.

It was this group that laid the foundation for the modern view of work and profit, the contempt for indolence, the calculation of time as money, the proliferation of the professions, the scientific view of things with the masters of the Renaissance. A critical turn of mind overtook us, and the god of mammon started to compete feverishly with that of God. They could have heard what Jesus said: make unto yourselves friends of the mammon of unrighteousness… Some scholars said Jesus encouraged dishonesty. We know the parable of the unjust servant, and the fact that he was unjust told the story. Jesus did not call for interest. Nowhere in the scriptures does so.

Banking was a story of Christians who dumped strict Christian principles in favour of profit. Americans are at bottom Calvinists. They are puritans in faith and puritans in business. They pursue faith and profit with equal enthusiasm. That was why Max Weber said the spirit abandoned what was called enchantment, a world peopled by only spirits. They became disenchanted and followed not only the spirit of God but also the spirit of capitalism.

What is called Islamic finance only calls for a strict adherence to a different sort of capitalism. It is wrong to deny Islamic finance the description of capitalism. The Muslim world wants capitalism in its own way. It calls for what it calls profit sharing. Rather than give a loan to a man to buy cars and charge for interest, it would buy the car at above the market value and sell it to the customer. The buyer will decide whether the profit is what he or she can live with. There will be a Sharia council to watch operations, but there is nothing wrong with that. If Christians are so worried about that, then they should not patronise the banks. The bank is not being imposed on everybody. If you decide not to use the bank, then go to other banks.

It is one of the fastest growing institutions in the world of commerce, and it is flourishing in Europe and the United States. It is better than what we have today when banks are lazy and charge astronomical interests for loans that help nobody but themselves. About 250 mutual funds and major banks have some form of Islamic banking to those who want it. Islamic banking is collaborative banking, and the customer takes part in negotiating terms and shares profits with the bank.

What the world witnessed in the past few years with shylock CEOs has drawn quite a few people to the Islamic alternative. Even the Vatican has argued that “the principle of Islamic finance may represent a possible cure for ailing markets.” This is the Catholic Church.

I wonder if many who oppose this brand of banking understand what it means. As I noted earlier, it has to do with the context of Sanusi’s rhetoric. It ought to be explained not only as an economic venture by a competing deity, but a practical way to do business. Capitalism grew out of the word laissez faire, which implies that others are free to make profit. Let a thousand traders bloom.

This is not the time to ratchet up rhetoric over religion, especially in these days of rampaging Boko Haram partisans. Rather than destroy Islamic banking, let us see how we can make it work.

pardon the quatation negro

I find it ridiculous, thoroughly obnoxious, that anybody would declare that Allah, Jesus or whatever commands the FG.
Nigeria is a secular state with massively troublesome religious polarities, therefore "Islamic" banking is an abberation and avoidable troublemaking. It is ok for states to have "Islamic" banking, thats their business, but there will never ever be a state religion in Nigeria and sharia will never ever be FG policy.

Beaf,

Your brother is touching up the constitution and changing things that ordinarily ought to be addressed by law. What stops a core Northerner from following the precedence set by Gej and making Islamic banking a national institution?

^^^^

Leave them to continue building the monster, they will hand it over to the oligarchs in due time and start shouting marginalization again, very soon.

Another Aguiyi/Azikwe is on the seat.

Over flogged issue, Can we move on to more important issues

Power, Jobs and security for the Nigerian people.

Islamic Banking is all i see   
loving it 

the issue is how the banks will cover running costs? the idea is not bad anyway.

Although i was born and bred in a very strict christian (catholic) family,
i do not subscribe to a blanket condemnation of everything about other
religions, particularly islam, just because i`m a christian. There are some
great islamic personalities and institutions around the world, one of which
is the controversial islamic bank. Can anyone tell me what`s wrong with
islamic bank which operates freely in the western world from where
christianity came to our shores?. if i apply for a N20m loan from any of the
existing comercial banks, the interest rate will be very high. If the islamic
bank grants me the same loan, interest free, will i reject it just because
it`s islamic?. Certianly not.

nakedall:

the issue is how the banks will cover running costs? the idea is not bad anyway.

the bank will charge administrative fees, would also share from profit or loss from business done with borrowed money. Main difference is that no fixed interest rate as done by present banks who charges fixed amount regardless of what happens to the business engaged with borrowed fund.

Like someone said: can't we pls move ahead and concentrate more on issues that affects all of us? Discussing issues like Job, security, how to cut inflation, provide healthcare, power, among others, I think is more paramount than this Islamic Banking bla bla, Muslims want it; so let them have it. Some have the view that Nigeria is a secular state, it may be so in theory but certainly not in practice. Denying this is tantamount to denying the entity called "Nigeria", So let's move ahead for heaven's sake!

It seems government is happy with this unnecessary controversy. This divert peoples attention from demanding good governance from government.

Allah's command to who? Does that mean all the other Allah's commands in the Quran should be imposed on Nigeria? Commands like all non muslims should be killed by muslims? And those who are kept alive must pay taxes to the Muslims? Allah's commands? smh

No matter how we convince them,some will never go by the truth,Is it a curse to do the right thing? To give loan without unpleasant conditions? What i know is that,some people dont want to see or hear the word "Islam" even though they know the truth but they will rather die rather than accepting it.
When the day comes we shall see the fact,though might have been too late for some

Ehhmmm, Mr Azeez, I'm not against Islamic Banking. If you want to open islamic banks, tell me about the benefits and how it will help people, not that "Allah commands it". And refrain from using words like "right thing", because it implies all the other banking systems are not right.

It is nt a must every1 shld bank wit dem.

Dont pretend you dont know its benefit,anyway,it's not imposed on any body!

For the proponents of Islamic banking, I have a few questions for you. Firstly, from what has been dished out to the nigerian public, islamic banking product will make funds available to borrowers at no interest rate.If that is true,where will those banks make their profits from? Secondly, how will such a bank be sustained if profits are not made? and most importantly ,where will such free fund come from?

labidox:

For the proponents of Islamic banking, I have a few questions for you. Firstly, from what has been dished out to the nigerian public, islamic banking product will make funds available to borrowers at no interest rate.If that is true,where will those banks make their profits from? Secondly, how will such a bank be sustained if profits are not made? and most importantly ,where will such free fund come from?

Islamic banking is not a Nigerian phenomenon. the same 'no-interest' principle is in effect in Islamic banks in the UK, in the US and a myriad of muslim nations. Please do your own research and find out how Islamic banking in those countries have been profitable. I shall not encourage laziness.

Beaf:

[size=14pt]‘Islamic banking is Allah’s command’[/size]
By Tajudeen Adebanjo

Nigerian Muslims have been called upon to give Islamic banking all the needed support because it is the command of Almighty Allah.

This call was made by the Chairman, Joint Technical Committee, Lagos State Muslim Council (LSMC), Prof Tajudeen Gbadamosi during the 2011 Ramadan lecture organized by LSMC.

Speaking on the topic; “Islam and Contemporary Challenges”, Prof. Gbadamosi said that as five daily prayers, Hajj and fasting in this month are commands of Allah, so also is the issue of Islamic banking.

Quoting copiously from the Quran, the scholar reminded Muslims of Allah’s command that interest is forbidden and that those who are still charging and taking interest should be prepared for Allah’s wrath.

“Islam is a perfect, complete, comprehensive and divinely-chosen religion which is all-inclusive of the past, addresses the present and gives guidance about the future. It is for all people at all time and as Muslims, we are expected to submit ourselves wholly to Allah’s command,” he said.

Islam, he said, will always face challenges as it was done in the past because those whose past time is falsehood will not yield to truth easily.

He urged parents to give greater attention to quality education.

“Let us encourage our children not to stop academics at first degrees programme. All Islamic organisations should have long term plans aimed at encouraging quality education. In addition, there is no synergy between knowledge and good character among our children. Let us embark on integrating knowledge with good character and moral upbringing,” he said.

http://www.thenationonlineng.net/2011/index.php/news/15060-%E2%80%98islamic-banking-is-allah%E2%80%99s-command%E2%80%99.html

Is there really any difference between this and Pastors like Ayo Oritsejafor exhorting their congregation to vote for GEJ in the last elections?
I don't understand the rationale behind this post. For Muslims, the quran contains Allah's command and the Quran explicitly speaks against usury. Would you have made any post if any 'Man of God' had announced that "paying tithes is God's command"?

Please stop pushing this your brainless agenda of ethnic and religious division. Thanks.

texazzpete, you did not answer simply because you dont have a clue!. This is my 3rd year in islamic countries(bahrain and now qatar). I have bank accounts here. My findings shows they charge interest failure of which no serious bank can survive. The only difference is that it is not compound interest. The interest is calculated over the money and it doesnt increase yearly as it would have if it were compound interest.
This is possible here cos people here have records.Every single individual here has identity card with a peculiar set of numbers. Finger prints of all residents are taken in the process of issuing these registration cards. How will such an idea work in a country like Nigeria that has no borders? no records of residents ? and porous?.

And So Shall it Be. . . . Insha'llah!

Please leave the realm of laziness alone and do your own research.
As we speak, Stanbic IBTC has obtained a license to operate Islamic banking window. Do you really think this would be the case if the venture was not projected to be profitable for the bank?

I don't understand your babbling about ID cards. Don't Nigerians obtain loans from regular banks with accepted forms of personal identification (like drivers license and passports)?

I have posted links in many other similar topics on Islamic banking showing increased profitability for banks in the US and UK that offer these services. Only 5 minutes on Google will give you all the information you need. Do not allow laziness to overcome you.

If u lyk, kip an aboki in canada 4 17yrs, An aboki wil remain an aboki

This non-Issue again! OMG, Can we have a real innovation that can benefit Nigerians from Sanusi, other than this religion sponsored propaganda.
One fooool says it is dominating in Europe. Where in Europe ? I know of American Islamic bank, I digged it out recently, they didnt even called it Islam bank.
Ask any America about Islamic bank, it wont ring any bell to them simply because it is not popular anywhere (except arabic lands). Stop deceiving Nigerians.

Catholic says "may be Islamic bank is the solution to this ailing economy" does not mean it is. They too want to test it. Everybody is looking for formulas to solve this world economy problem. Trying Islamic bank is not bad.

Why is it all about Interest free loan. Who want loans anyways ? Taking loans is against the bible, the commandment of God.

Please we have important issues, power, Job, security, health. Please lets concentrate and lets leave this "Islam is supreme Christianity is the way game" We are tired of religion competitions. The best religion in the world approve by God.

Another question is, these banks, they are going to employ staffs, NEPA bill, Water, Building, Tax, Printing and Paper, advertisement, Land, Fixed assets e.t.c who is going to be footing the bill ? So you mean if I want a loan of 10,000,000 (with collateral), I can just go into these bank and take it ? Meeeeeeen, why is it not happening in America where they have it? Hisssssssh who is decieving who ?

Next agenda, we are going to change our name to "Islamic Republic of Nigeria" if christian like it or not. And, we are going to add *) to our flag.
They just want to show the world Nigeria is an al qaeda state

I have read the opinions of people on the issue of "Islamic Bankink" and I love their contributions. This concept was started by Soludo in which BOFIA decree of 1991 was amended to include islamic banks. The concept is not really islamic bank per se. It is non interest banks based on two principles.
1. Non interest bank bank based on islamic juruspudence.
2. Non interest bank based on other principles.
Because of the peculiarity of islamic injuction in doing some businesses, if you are a muslim, you can apply for license under the principle 1. This is because our conventional courts lacks juridiction in entertaining any legal tussle on islamic or sharia matter.
But if you are Christian, you can apply for license under the principle 2 in which the guidelines of islamic banking will not be applied to you.
The difference in guideline is that there are some businesses islam forbids that are allowed by christianity. If the guideline is general, there is no way the fundamental right of one religion will not be trampled upon. So seperate guidelines have to be given to the two principles and the same thing is being done in UK where they have "Islamic Bank of Britain".
BENEFITS
If you go to banks for loan to do a business, the high interest rate they will charge you would have taken away substantial part of your profit but if you have a bank that can give you loan without interest, this will encourage small scale businesses and the agricultural sector will be the great beneficiary.
We should not look at it from the religious point of view rather than how it will benefit the economy.tter.
But if you are Christian, you can apply for license under the principle 2 in which the guidelines of islamic banking will not be applied to you.
The difference in guideline is that there are some businesses islam forbids that are allowed by christianity. If the guideline is general, there is no way the fundamental right of one religion will not be trampled upon. So seperate guidelines have to be given to the two principles and the same thing is being done in UK where they have "Islamic Bank of Britain".
BENEFITS
If you go to banks for loan to do a business, the high interest rate they will charge you would have taken away substantial part of your profit but if you have a bank that can give you loan without interest, this will encourage small scale businesses and the agricultural sector will be the great beneficiary.
We should not look at it from the religious point of view rather than how it will benefit the economy.

So where will the profit comes from when nobody is paying interest ?
Or is there any divine magic where revenue can comes in

Another question is, these banks, they are going to employ staffs, NEPA bill, Water, Building, Tax, Printing and Paper, advertisement, Land, Fixed assets e.t.c who is going to be footing the bill ?

I'm still at a loss as to how non christians/pseudo christians came up with the farce that christianity is anti-interest,
There is the need to differentiate judaism from christianity
Judaism which actually gave precedent to christianity forbids usury as seen in Exodus 22:25, Leveticus 25:36,37, Deutoronomy 23:19,20, Nehemiah 5:7,10 et al,
Now, here is what our Lord Jesus said in the parable of talents (Matthew 25:27)
'Thou oughtest therefore to have put my money to the exchangers, and then at my coming i would receive of my own its usury' (KJV)
That does not sound, to me, as the words of one who was averse to interest banking as omatseye and his ilk will have us believe OR can one be more christian than christ himself.
By the way am i the only one surprised that this same SLS, Only 2years ago served in the board of, and was the CEO of one of Nigeria's biggest interest banks,
I'm nt against non interest banking, and i dont think anybody should be, but lets stop giving it religious coloration or justification, be it christian or other wise

********Enters Post, sees Beaf's lame attempt at starting a new controversy over an overflogged issue. Yawns out of drowsiness and boredom. Decides to move on to bigger and better things whilst waiting eagerly for StanbicIBTC to roll-out its Islamic banking services. Would also like to encourage Muslims to focus more on acts of worship in Ramadan, rather than continue argument with people who will not read, listen or understand********