Ahlul Bayt News Agency) - “This is coming after over five years of raising fund for capitalization, stiff opposition from some Christian groups and media bigots amidst a myriad of other challenges,” Disu Kamor, spokesman of the Muslim Public Affairs Centre (MPAC), told OnIslam.net.

Jaiz Bank Plc began Shari`ah-compliant financial operations in Nigeria in January.

Based in the capital Abuja, the ban has two branches in the core Muslim northern states of Kano and Kaduna.

It is expected to spread its tentacles to other regions in the coming years.

“The whole idea of this banking option is to bring more people into banking in Nigeria that provides banking without interest,” the bank chairman, Alhaji Umar Mutallab, told the bank’s inaugural Annual General Meeting.

“This kind of banking is for all religions because no religion wouldn’t want to help, especially in funding critical project without using interest elements.

“Whether it is Christianity or Judaism, every community wants to borrow money without being bugged down with multi-layer interest structure.

Islamic banking has been a hot issue in Nigeria since the Central Bank of Nigeria (CBN) unveiled plans to introduce Islamic banking services in the country.

Christian groups have strongly opposed the move, accusing the CBN governor Sanusi Lamido Sanusi of favoring one religion above another.

The umbrella Christian Association of Nigeria threatened a legal action unless the CBN withdraws its license to Jaiz to launch Islamic banking services.

But the CBN rejected the Christian accusations, saying the model was only optional and is meant to give Nigerians an alternative to the much-criticized conventional banking system. Sources at the Jaiz bank told OnIslam.net that the bank’s operations started on a low-key without any press briefing in order not further heat up the socio-political atmosphere in the country.

Nigeria, one of the world's most religiously committed nations, is divided between a Muslim north and a Christian south.

Muslims make up 55 percent of the population, Christians 40 percent and five percent atheists.
Nigeria’s Muslims and Christians generally live peacefully side by side, but regional and ethnic rivalries bubble under the surface.

Muslim Support

MPAC called on Nigerian Muslims to throw their weight behind the nascent Islamic banking industry.
“Alhamdulillah! The Islamic banking is here: our religion mandates it; we fought for it; and with the Mercies of Allah, now we’ve got it,” Kamor said.

“It is therefore incumbent on us to learn about its operations, support and sustain it.”
Prof Ishaq Lakin Akintola, executive director of the Muslim Rights Concern (MURIC), told OnIslam.net that it behooves on “all of us Muslims to rally round this initiative to ensure it succeeds”.

“Whether we will act now or lament later, the choice is ours. This is the time to be proactive so that we’ll not be forced to be reactionary later.

“Finally, Allah loathes riba (interest), Jaiz Bank affords us the chance to please Him, the merits of the banking system are conspicuous and the time to support it is now!”

Islam forbids Muslims from usury, receiving or paying interest on loans.

Transactions by Islamic banks must be backed by real assets, not shady repackaged subprime mortgages.

Shari`ah-compliant financing deals resemble lease-to-own arrangements, layaway plans, joint purchase and sale agreements, or partnerships.

The Islamic banking system has been already practiced in 50 countries worldwide, making it one of the fastest growing sectors in the global financial industry.

In a report last November, PricewaterhouseCoopers said the $1 trillion Islamic finance industry was expected to grow by between 15 to 20 percent per year going forward.

Dr. Abdul-Lateef Adegbite, scribe of the Nigerian Supreme Council for Islamic Affairs (NSCIA), said Islamic banking has come to stay.

“We thank Allah (SW) for His mercies for letting this dream come to a reality in our life time,” he told OnIslam.net.

“It is indeed a dream come true. Together we must support this initiative in order to shout down those who are always against Islam.”

http://abna.ir/data.asp?lang=3&id=294216

very well done, it was needed

Boko Haram Bank, The bank manager will definitely be a Terrorist, any day he becomes angry he will blow his customers into pieces

Must everything that will further tear this country apart be implemented this yr 2012?

Okay

Why would I want to use Islamic banking, you tell me.

I am starting a group on Facebook to advocate for Christian evangelical compliant banking in Nigeria

Interest free loans?! wow! I'm so gona patronise them jare. Nigerians should stop bringing religion into everything. As far as this bank operates within the confines of the law, I see nothing wrong with it.

I have no problem with it . . . . . . as long as it conforms to law and subject itself to forensic scrutiny and routine audit by CBN to check abuses by terrorist groups to channel funds for their activities . . . . which I think is the basic sublime fear of the antagonists.

But why can we not have normal banking , why must religion be brought into it , surely this is partisanship

frosbel:

But why can we not have normal banking , why must religion be brought into it , surely this is partisanship

Why can't they have their own bank if it has not broken any law?

frosbel:

Why would I want to use Islamic banking, you tell me.

I am starting a group on Facebook to advocate for Christian evangelical compliant banking in Nigeria

This is what I still don't understand. Why all the noise? Nobody is asking you to use it and NOBODY can force you to use it. Just leave it to those who will benefit from it. But your problem is its mere existence is what is eating you up.

I hope they spread to SW soon enough. Lots of bright ideas that need funding will not hesitate to take the opportunity since our regular banks will only finance business/project from the Otedola et al of this world.

@ frosbel, You have the option to bank with the "normal" bank. Where is the religious telorance you scream that we hear about the xtians? You must be looking so pale by now. I hope you've not lost any tooth as a result of continous gnashing? Goodluck on your campaign for el-shadai bank plc.

solihu:

@ frosbel, You have the option to bank with the "normal" bank. Where is the religious telorance you scream that we hear about the xtians? You must be looking so pale by now. I hope you've not lost any tooth as a result of continous gnashing? Goodluck on your campaign for el-shadai  bank plc.

I was thinking more along the lines of Mount Zion bank PLC  

Good! The likes of Adeboye, oyakilome and there to annoint the day to day cash inflow and outflow. Just make one of them the chairman, before you know it, halleluya! You'd become a proud jet owner. Cheerz

solihu:

Good! The likes of Adeboye, oyakilome and there to annoint the day to day cash inflow and outflow. Just make one of them the chairman, before you know it, halleluya! You'd become a proud jet owner. Cheerz

But you have not answered my question though !!

Why must we involve religion in banking

frosbel:

But you have not answered my question though !!

Why must we involve religion in banking

Why should a bank impose morning service b4 banking activities every morning. Besides, nobody is bringing "religion" into banking. A number of banks you are used to already has interest-free biz unit within them. The name Islamic is giving you migraine abi?

gists:

Why should a bank impose morning service b4 banking activities every morning. Besides, nobody is bringing "religion" into banking. A number of banks you are used to already has interest-free biz unit within them. The name Islamic is giving you migraine abi?

In a way yes, because they are the only group that always want special treatment for everything in society.

They are very segregative !

^ Thank you!
Frosbel, If nothing has been found wrong with it "statutorially" I think you should give "Islamic banking" a rest. Be honest at least for once, why haven't you seen anything wrong with oath taking i.e in courts where bibles and Qur'an are used, ofcourse subject to ones belief?

ISn't that against the act establishing banks? i seem to remember hon bitrus kaze publishing the act sometimes back.

In compliance with a House resolution requiring him to clarify the cash withdrawal limit and the Islamic banking policy, Sanusi Lamido Sanusi the Governor, Central Bank of Nigeria (the CBN Governor) appeared on the floor of the House of Reps on Thursday 21st July, 2011. He had a field day courtesy the Deputy Speaker, Rt Hon Emeka Ehedioha who while presiding, shielded him from being asked questions. I concur with two respected colleagues cum principal officers among others, the Rt. Hons Femi Gbajabiamila and Samson Osagie who described the Deputy Speaker’s conduct as “an error of judgment” as well as “a blunder” (Thisday & Leadership 22nd July, 2011). This breach of our privileges is reminiscent of the Dimeji Bankole era when those opposed to the views of presiding officers were shut out if not manhandled.
It becomes imperative to invoke the fundamental rights of a Nigerian citizen guaranteed irrevocably under Section 39(1) of the Constitution of the Federal Republic of Nigeria (CFN 1999 as amended) to bring to focus serious reservations over the Islamic banking policy which unfortunately were aggravated by the CBN Governor’s monologue on the floor of the House.

The CBN Governor’s repeated reference to some countries including Britain, USA, South Africa, Kenya and Malaysia where he claimed Sharia Banking is in operation is premised on the wrong presumption that since these non-Islamic countries operate Islamic banking, non-Muslim Nigerians ought not to question it. The Nigerian nation, unlike any of these nations is exceedingly sensitive on matters bothering on religion and ethnicity. The framers of CFN 1999 had this in mind hence Section 14(3) which provides that “The composition of the Government of the Federation or any of its agencies and the conduct of its affairs shall be carried out in such a manner as to reflect the federal character of Nigeria and the need to promote national unity, and also to command national loyalty, thereby ensuring that there shall be no predominance of persons from a few State or from a few ethnic or other sectional groups in that Government or in any of its agencies.”

The Fundamental Objectives and Directive Principles of State Policy in Section 16(d) of the CFN 1999 as amended provides that the State shall “without prejudice to the right of any person to participate in areas of the economy within the major sector of the economy, protect the right of every citizen to engage in any economic activities outside the major sectors of the economy” (bold & underline provided).

The guidelines issued by the Sanusi Lamido Sanusi led CBN states that “A Non-Interest Financial Institution (NIFI) means a bank or Other Financial Institution (OFI) under the purview of the Central Bank of Nigeria (CBN), which transacts banking business, engages in trading, investment and commercial activities as well as the provision of financial products and services in accordance with Sharia principles and rules of Islamic commercial jurisprudence.” The Glossary of Terms of the CBN’s NIFI Framework defines Sharia principles as “the divine guidance as given by the Holy Qur’an and the Sunnah of the Holy Prophet and embodies all aspects of the Islamic faith, including beliefs and practices.”

Pork for example, is a delicacy and a major revenue earner in my constituency. The Brewery Agro-Research Company, Zallaki near Jos (though now moribund) became renowned for providing huge employment opportunities through Pork production. An Islamic banking system which prohibits any Pork related businesses, will exclude my constituents from pursuing a legitimate economic activity in breach of their constitutional rights to engage in any economic activity. Section 1(3) of CFN 1999 as amended provides that “If any other law is inconsistent with the provisions of this Constitution, this Constitution shall prevail, and that other law shall, to the extent of the inconsistency, be void.”

The Bank and Other Financial Institutions Act as amended (BOFIA) on which the guidelines are hinged, was originally enacted into law in 1991 as a decree promulgated by the Gen Babangida administration, the CBN Governor then was Alh Abubakar Ahmed, both were committed Muslims. Section 37(1)(a) of BOFIA prohibit banks and financial institutions from using names that project any religion, this was necessitated at that time because of the intense heat the country was thrown into (as is the case now) over Nigeria's membership of the Organization of Islamic Countries.

Prof Charles Soludo, whose policies including the removal of Arabic scripts from our currency have been reversed, may have “approved” CBN’s membership of Islamic Financial Services Board. However, it is Sanusi Lamido Sanusi who without any recourse to National Assembly, approved controversial operational guidelines so heavily injected with the “Islamic” dose and at the peak of the terror of the Boko Haram sect who incidentally are equally seeking to enforce the same “Sharia principles.” The expressions “Islamic” and “Sharia” are the chief offensive labels that have triggered and sustained fierce antagonism against this lopsided policy. The CBN Governor was definitely economical with the truth when he pretended that “Islamic banking is just a name” (Daily Trust 22nd July, 2011).

The Islamic banking policy is inextricably rooted in the Islamic religion which is the blood upon which it thrives. In all intends and purpose, the CBN Governor’s attempt “to remove the product from religion” (Thisday 24th July, 2011) cannot be honest, it is an attempt to remove blood from the human system or to remove fish from water. It cannot survive! Islamic banking is an exclusive religious product explicitly hinged on Sharia law; no amount rhetoric can change this fact. It does not matter how many countries operate Islamic banking, as long as it is in conflict with the Constitution of the Federal Republic of Nigeria, it remains unconstitutional. Notwithstanding huge public outcry, the zeal with which the CBN Governor has continued to campaign for the enforcement his Sharia Banking agenda is unequalled in our history; it is enough ground to hold his motives suspect. It amounts to a conflict of interest for him to be the lawmaker, regulator as well as the chief marketer of the Islamic banking system all at once. The allegation that he has allowed his personal interest to influence his official conduct in my considered view is very well founded.

Had the presiding officer put the question, I would have dutifully voted against Islamic banking so that posterity will record me as such.





Hon. Bitrus B. Kaze is a member of the House of Representatives

I have nothing against it per se, I could even use it if I see the benefits for me, I am just curious as to the religious undertone and why Dr. Abdul-Lateef Adegbite sounds angry about the opposition to this concept.

frosbel:

I was thinking more along the lines of Mount Zion bank PLC  

You have now deformed intercontinental and oceanic banks already lol,

when are they going to open branches in lagos? me likey

make i just take 20 million naira loan do biz for 5yrs without interest

Alhamdulillah! I cant wait to begin business with this bank. I am done with the usury infested blood suckers. Thank you frosbel.

The chairman of the bank, Alhaji Umar Mutallab is that not the father of the Detroit Christmas Day Underwear Bomber Farouk Mutallab? The same man who was former chairman of First Bank? I am just asking o.

some of u guys from south supporting it don't have enough knowledge of their hidden agenda. I must tell u that they will use it to finance terrorism. Don't compare islamic bank in Nigeria and that of America or UK cos the xtians there will not even allow them. Again the muslim to christian ratio is not 55 to 40. It's a lie, christians are the majority in Nigeria. Go to Population commision.

frosbel for NL president. Vote for him!

suolboy:

some of u guys from south supporting it don't have enough knowledge of their hidden agenda. I must tell u that they will use it to finance terrorism. Don't compare islamic bank in Nigeria and that of America or UK cos the xtians there will not even allow them. Again the muslim to christian ratio is not 55 to 40. It's a lie, christians are the majority in Nigeria. Go to Population commision.

the ones in the US, Germany and UK, they also use it to finance terrorism too?

Boko haram bank has finally started

Frosbel, c'mon you know that's a blatant lie. Oh! Suddenly, it is because of Dr Abdul-lateef's remark? Good heavens! What about your ferocious comment prior to the banks granting of licence by the CBN? The plain truth here is the word "ISLAMIC" makes you quiver with hate. Like so many other xtians has displayed so many times and in so many places. This kind of hate leads one to be a "subtle terrorist", gradually you may be what never dreamt of becoming.

There is noting in principle wrong with this bank so long as tax payer's money is not involved in any shape or form. I remenber BCCI in those days some crooked Arab bank whose license was withdrawn in UK for unethical practices. As we are now agreed no Hausa/fulani idiot to ever rule Nigeria again the bank will be dried forever.

mamdanju:

Alhamdulillah! I cant wait to begin business with this bank. I am done with the usury infested blood suckers. Thank you frosbel.

Is this banking open to everybody ?

What is the criteria for opening an account ?

Can Christians , Jews and the other heathen (   ) use this system.

Ehen! Now your are tabling your fears as you ought to have done from the inception. You want answers? Do tell me if you've jettisoned the idea of opening "Holy ghost dollar chariot bank plc",

solihu:

Frosbel, c'mon you know that's a blatant lie. Oh! Suddenly, it is because of Dr Abdul-lateef's remark? Good heavens! What about your ferocious comment prior to the banks granting of licence by the CBN? The plain truth here is the word "ISLAMIC" makes you quiver with hate. Like so many other xtians has displayed so many times and in so many places. This kind of hate leads one to be a "subtle terrorist", gradually you may be what never dreamt of becoming.  

How can Islam make me quake in my boots ?  

Satisfy my curiosity and enlighten me. I only asked a question.

Islam is the least of my daily problems, but I am excited to know why it keeps placing more and more demands on a secular society.

They want  different dress in schools, different types of meals, different banking, , I mean common, which other group has time for all these trivials.