For goodness sake,Y is it that people are worried about who will pay the bills,Tax/revenue, as far as the money will not be deducted from ur salary or accounts wats ur problem?if they say they want to run an islamic bank lets fold our hands and see,

Willzkid:

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,

Did Sanusi tell you that the conventional banks are being replaced by Islamic banking? Did Sanusi tell you that he considers interest banking a sin?

The CBN governor should focus on regulations. For example, today we have Micro Finance banks, but how many of them are strictly following micro financing principles. Most of them are just micro finance banks by name. If the CBN can not regulate micro finance banks what is the guarantee that it can regulate Islamic banks.

Banks will simply go for Islamic banking branding because of the buzz generated only to continue business as usual.

However, it is inaccurate to say that Islamic banks will not collect interest. You may wish to deceive yourself by calling it profit sharing, but when it comes to stating it in your business account it will still be in the same place interest would have been. The only difference as far as interest is concerned between an Islamic bank and mainstream banks is that an Islamic bank will only charge interest if the business makes profit compared to mainstream banks that charges interest no matter how the business fares.

So for an Islamic bank interest is not known when you are taking the loan, only the profit sharing formula is defined like 50:50 or something. So, Islamic banks charge interest on profit (although Moslems prefer to see it as profit sharing) and that is how they make money to run their operation. So the more profit the business makes the more interest you pay.

For example, if you borrowed N1,000,000 from passyjango Islamic bank (all rights reserved), and the profit sharing ratio is 50:50. If the business makes N200,000 profit, the bank in addition to the principal takes N100,000 share (10% interest on loan), if profit was N400,000, the bank takes N200,000 (20% interest on loan). On the other hand if the business made only N10,000, the bank takes N5,000 (0.1% interest on loan). Nothing will be paid if no profit is made, however I expect the bank to demand for the remainder of the principal you borrowed, so that they can cut their losses.

So, Islamic banks collect interest but Moslems refuse to call a spade a spade for whatever reason.

Niseamaka:

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.

Niseamaka:

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.

Although there is nothing wrong with islamic banking, but there are lot of things that wrong with Nigerian Muslims expecially those from Northern part of the country, Imaging a set of people clamoring that saria law should be fully implemented in all Northern states. Without conserdering the faith of other non Muslim, So you can not compare western word with Nigerian mentality.
how are we sure that, Boko Haram and like would not begining to see  conventional banks, as christian banks if islamic banks eventually spring off.  These banks may be forced to close their braches in some norther state,

maclatunji:

********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********

Thank you Jare

dabrake:

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

islamrules:

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.

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

GBAM.

@ texazpette
If interest banking is anti-islamic, or is an abomination to Allah as asserted by most muslims including this thread's subject, where does that put SLS, muslim board members of conventional banks, and those muslims owning accounts in conventional banks?
It's like coming out to speak against cigarette smoking when i have interests in BAT,
That to me smacks of hypocrisy, or did we just discover that page in the quran?
Please i have nothing against islam, but i'm just a bit confused with the sudden outbursts on usury being an abomination, when i can bet most of those imams have accounts in conventional banks, is this not a case of talking from both sides of the mouth, hope you get my point?@ texazpette
If interest banking is anti-islamic, or is an abomination to Allah as asserted by most muslims including this thread's subject, where does that put SLS, muslim board members of conventional banks, and those muslims owning accounts in conventional banks?
It's like coming out to speak against cigarette smoking when i have interests in BAT,
That to me smacks of hypocrisy, or did we just discover that page in the quran?
Please i have nothing against islam, but i'm just a bit confused with the sudden outbursts on usury being an abomination, when i can bet most of those imams have accounts in conventional banks, is this not a case of talking from both sides of the mouth, hope you get my point?

When u tink islamic banking, then u should also tink of brain surgery ASAP

Wednesday, 03 August 2011 00:00 By Kelechi Eme (The Guardian Newspaper)
I have watched with total amusement the dialogue of the deaf going on between the pro and anti-Islamic banking recently operationalised by the Central Bank of Nigeria (CBN). I asked myself whether the debate has been about rocket science or breakthrough in modern medicine. It is a shame that a significant fraction of our national discourse has been wasted on an issue that should have been thrashed at policy level. I have maintained that it is only leaders suffering from acute poverty of ideas that resort to religion and ethnic pandering as an escape route in public debates. What is non-interest banking? What is Islamic banking? What are the effects of both on our economy and to a large extent polity? What is the interest of CAN in opposing Islamic banking? Is CAN a subterfuge for anti-Sanusi elements? Unbiased answers to these questions will help us in relocating the debate from the pedestrian level we have been pushed into by men who are looking for a
minute opportunity to exhibit their infantile political libidos.
What is Non-Interest Banking (NIB)? As the name implies, this is a form of banking that the borrower attracts zero interest from the lending bank. The subscriber to a non interest loan requires no collateral to access the facility. All the beneficiary need to do is the provision of a viable business proposal to the bank for approval. The bank enters into profit sharing agreement with the beneficiary, and the profits made from such ventures are used in running the banks. Bank charges are also deducted through this process. Because the bank carries the entire risk, monitoring and strict disbursement conditions are the hallmark of non-interest banking. The bank bears 100% loss in the event of business failure.
What is Islamic Banking? The 1991 financial services decree (BOFIA) is the law that laid the foundation for the operation of Islamic Banking, which is a subset of non-interest banking. The Central Bank of Nigeria under the leadership of Prof. Charles Soludo (A distinguished scholar and arguably the best CBN governor of all time) developed the framework for the take-off of the NIB. The Islamic banking model is one of the three subsets of NIB that the apex bank approved for this facility. The Islamic bank is designed around the Islamic 'sukuk' system which has similarities with 'bonos' of the capitalist system. The difference is that 'sukuk' money is invested in concrete projects and profit share is distributed among clients.  I do not think that a devout catholic like Prof. Soludo with his first class mind will do anything against his faith. A man who consolidated the banking industry and shielded our financial sector from the recent world economic
meltdown will always think in the interest of the country. This consolidation of the banking sector is what Mallam Sanusi Lamido is currently adding value to by weeding out "the rogue bankers" from the system. As a risk management expert, SLS is better placed to know the pros and cons of Islamic banking.
What are the effects of both on our economy and the polity? The first licence for an Islamic banking model was issued to Jaiz International Bank. People have asked why the Islamic banking window first? The answer is simple: Jaiz International applied for this model and was dully licensed after meeting the CBN regulations. It is also public knowledge that IBTC has been granted provisional licence to operate an Islamic banking window. Is Atedo Peterside a Muslim? The introduction of this banking model will harness the creativeness of young Nigerians who are unable to access loans from the conventional banks. Imagine what this opportunity will do to a university graduate who desires to be self-employed? The major beneficiaries will be the small scale industries that are perpetually hampered by absence of collateral in accessing bank loans. Our productivity will grow in leaps and bounds, unemployment will be reduced, agriculture will be boosted and crime
rate will be lowered. It is amazing that people want us to throw these benefits away because of the name "Islamic banking." I beg to differ. These benefits will in turn ensure a stable political environment devoid of the present rancours. We shall have a better political climate when the politician has no youth to use for his devilish tendencies.
The hypocrisy of the Christian Association of Nigeria (CAN), led by Pastor Ayo Oritsejafor though baffling, is not unexpected. The
issue  about using the Islamic bank as a tool of Islamising Nigeria is a red herring to divert questions from discerning Christians. I am a thoroughbred Anglican and I wonder how I am going to be Islamized by a bank I have a choice not to patronize. We have been fed with beer parlour tales of how Islamic principles will be applied in disbursement of the loans which in the mind of the talebearers amounts to Islamizing Nigeria. Haba! What these "merchants of the Gospel" failed to educate their followers is that there are investors who would not want their funds invested in the manufacture of alcoholic beverages, casinos, cigarettes and prostitution enhancement ventures. These individuals will not channel their funds to the normal Non-Interest banks, but to an Islamic bank window that will ensure strict adherence to these
principles. The CAN president and his co-travellers should please answer the questions below:
* Has the holiday on Sundays evangelised non-Christians?
* Has the cross symbol in public health institutions evangelised non-Christians?
* Has insurance companies owed by churches evangelised the entire country?
* Is he aware that the Christian universities are operating in strict adherence to the teachings of their respective ministries?
* Is he aware that himself and other multi-billionaire pastors are in a position to help Christians by establishing a non-Interest bank that will practise in total adherence to the teachings of our Lord Jesus Christ?
* Is he and other church leaders worried that their congregants will start asking essential questions on the lifestyles of "men of God?"
* When will they pause to imagine what our society could have been if the early churches in Nigeria spent tithes and offerings in exotic lifestyles instead of investing in extremely affordable schools and hospitals?
I will admonish CAN and its leadership to heed to the declaration of Osaro Eghobamien, a senior advocate of Nigeria and a Christian that "objections to Islamic banking in Nigeria is a result more from a lack of understanding of what the banking products are really about and how the system works. "You see, all the leading banks in the world provide Islamic banking desk. There is absolutely nothing wrong with it. But maybe we need education. I have heard some inflammatory comments from very senior leaders in Nigeria . It just demonstrated ignorance because they need to ask what it entails. It is only a product that is being delivered by a bank and you have a choice."
It was remarkable that Mallam Sanusi Lamido Sanusi declared on the floor of the House of Representatives that the second highest shareholder of Jaiz International Bank is an Igbo man. He also stated that about 60% of the shareholders are Igbos. The point he was making must have been lost on linear thinkers without deep analysis. It is a fact that the Ndigbo is the most homogenous ethnic group in terms of religion in this country. Sanusi's point was clear: The Igbo man is a business minded individual that takes economic decisions without sentiments. You can give him the whole world, but he can never batter his beloved Christianity for anything.
Finally, is CAN involved in shadow boxing on behalf of anti Sanusi elements? CAN is knowingly or unknowingly fighting the battle of discredited bank chiefs and their collaborators. What was the position of CAN president when high profile Christians milked the deposits of fellow Christians? All these notwithstanding, the banks were looted and CAN was mute. That is not the way to lead the flock. My last question is why didn't the CAN leadership demand for audience with the CBN governor instead of playing to the gallery?
Question: was Erastus Akingbola, ex-MD Intercontinental bank (and Redeemed pastor) practising Christian banking, when he stole N300Bn?!
Some people keep telling us to move to more important issues such as jobs, security, poor infrastructure etc.
They tend to forget that all these issues are inter-related.
If we all agree that the conventional banks have failed to help d Nigerian economy because
no average nigerian can get loans to set up business from these banks with their hostile terms and conditions.
Infact they are not interested in real sector that could provide massive employment (which could create d jobs and reduce insecurity)rather they will rather finance importation of finished goods including toothpicks!
It is d state of d banks of any given country is a reflection of d country's economy.
Furthermore, there are extremely rich families in middle east (Some of these families controls the entire wealth of their country)looking for 'Sukuk' to invest in all over d world. These families will not invest in any country except any where there is no shariah compliant banks. Such monies could be used to develop our infrastructural problems such as NEPA/PHCN,Rail projects,roads etc. They will recoup their investment once d project has been commissioned and put to use and pple start paying for d use of d project  over 20 or 3o years period.
Germany with less than 2% muslim population is a beneficiary. German Sukuk (Saxony-Anhalt Sukuk)
In 2004, a €100 million Sukuk, structured as an Ijara Sukuk, was issued in the federal state of Saxony-Anhalt in Germany. The Federal Republic of Germany guarantees the debts of Saxony-Anhalt.
Nigeria and Nigerians have a lot to benefit from islamic finance generally including islamic insurance which is d next phase
I am a muslim and an Economist, so I believe I am well grounded in both Islamic and conventional finance. So if anyone in d house have genuine fear or      objective questions I will b more than glad to address it dispassionately.
However, I would encourage all and sundry to seek for knowledge on dis issue devoid of sentiments.
Someone ask why SLS of all people just woke up and championing this islamic banking after leading first bank of nigeria? The truth is quran told us to do away with conventional bank and insurance as soon as islamic bank or insurance is available.
For me as an individual, I use Zenith Bank and there is a standing order I gave to d bank not to pay any dime on all my interest yielding accounts.I use Gbagada Branch in lagos and I am prepare to give details of my account officer to anyone who wants verify this.
So, all along some of us are not finding dis existing banks convinient enough but in d absence of alternatives we have been struggling to cope hoping that one day we will have a bank in line with our faith. How can anyone or group of people want to deny us Islamic bank after waiting for so long?
The real issue rather than the sentiments we see all over is that some I mean some of our christian brethren are simply intolerant of anything islamic.
My mother's lineage are christians while my father's lineage are muslims, therefore, it will b wrong of me to make any serious comment rather, I will plead with non-muslims to look at d benefits and not d sentiments