Islamic banking not a ploy to shortchange non-Muslims, says NSCIA

    Sunday, 03 July 2011 00:00
    Lateef Ibrahim
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NIGERIAN Supreme Council for Islamic Affairs (NSCIA) has strongly pleaded with the critics of Islamic banking to be objective and desist from seeing the initiative as a ploy to short change Nigerian Christians or any other religious group. The Secretary-General of NSCIA, Dr AbdulLateef Adegbite, who made the appeal in a statement in Abuja, condemned negative reactions from certain non-Muslim quarters to the decision of the Central Bank of Nigeria (CBN).

According to Adegbite, “We assure non-Muslims that Islamic banks will not discriminate nor operate as a closed shop. Ownership of the banks will not be restricted to Muslims only.”

The Secretary-General of NSCIA said that non-Muslims interested in buying shares in the banks are free to do so as it was in the Jaiz case where many non-Muslims are already shareholders and therefore co-owners of the company.

According to Adegbite, “Non-Muslims, who so desire, would be free to be customers of any Islamic Bank in Nigeria.

“This new financial facility as represented by Islamic banks and other non-interest banking products, is certainly poised to usher in a new era of economic well-being into our country.

“It is certain to throw up new opportunities for ordinary Nigerians who would benefit immensely from the new development as they would enjoy access to less intimidating banking system that is ethical in its operations, and guaranteed attractive returns on their investments by way of profit sharing as supposed to interest taking,” he said.

The Secretary-General of NSCIA described the critics of non-interest banking in Nigeria as, “uninformed, un-objective and smack of religious intolerance.”

According to him, “Islamic Banking has become a global phenomenon. It has been adopted in more than 75 countries across the World.

“Some of these are Christian states or with predominantly Christian population such as United States, United Kingdom, Germany and France.

“In Asia, many countries, including Indonesia, India, Pakistan, Bangladesh and Malaysia are operating the Islamic Banking System,” he said.

While pointing out that African countries like South Africa, Egypt, Senegal, The Gambia, Niger, Kenya, Tanzania, Algeria, Libya, Tunisia and Benin Republic have also embraced Islamic Banking, Adegbite said, “Why should Nigeria, the sixth largest Muslim population in the World, not partake in the benefits of a global financial product?.

The Islamic leader said that Islamic banks provide an alternative banking facility to Muslims and interested Non-Muslims who do not want to patronise conventional banks principally for the avoidance of interest (usury).

His words, “The current introduction of Islamic Banking into Nigeria is constitutional and legal. It is purely an economic exercise and has no hidden religious agenda.

“It is not correct to situate the new development wholly to the tenure of the present CBN Governor Malam Sanusi Lamido Sanusi. On the contrary, the effort to establish Islamic Banking system in Nigeria predated Lamido Sanusi by several years,” he declared.

He explained that the move was first made during the tenure of Chief Joseph Sanusi when Jaiz International Plc lodged its application for a banking license.

“It was, however, under the governorship of Prof. Chukwuma Soludo that an approval in principle was issued to Jaiz. Governor Lamido Sanusi merely took over the processes on assumption of office,” the Islamic cleric said.

Adegbite said the recent CBN reforms and restructuring of Banks afforded Jaiz the opportunity to qualify for a license as a regional bank.

finally !!!!!

,

i hope people can read this so they can give peace a chance

Nigerians never want something good

If Mr Abdulateef Adegbite could explain how the practice of Sharia in some certain Northern states was expanded beyond the dictats of the Nigerian constitution then may be we can start taking him seriously.

we have all seen this kind of tactic before.

The Sharia Law as stated in the constitution of Nigeria was only as a customary law of choice for those who choose to use it to settle disputes like "inherittance", "marriage" or all kinds of family disputes where all parties to the dispute agree to this kind of law being used. In effect the sharia law was never designed to be binding on any Nigerian whether Muslim or Not.

But what we have seen over the years is the extra-constitutional expansion of the jurisdiction of Sharia law into dealing with criminal issues as well as elevating the law as a State culture/religion which our constitution as is forbids.

This is exactly what will happen if Sanusi's ridiculous religious mantra is allowed to take root. I will not be suprised if what was proposed as an option in existing banks is made the only type of banking available in some sections of Nigeria. What you will now see is expulsion of existing banks from these regions, while only banks willing to operate exclusively as Islamic Banks are allowed to do Business in the North.

So the language of what Sanusi is proposing may not mean anything at this point, what we should be asking is that what is the coded intention of this whole madness by the CBN Governor.

If all he is interested in is a genuine intention to better regulate banking practices. I don't believe you need titles like SHARIA or ISLAMIC Banking to achieve that. You can simply introdce these mechanisms into existing practices to better regulate our banks and there will be no need for this noise. Let no one be fooled into believing any nonsense. We have seen this kind of deception before in Nigeria and I think the Prince of kano is at it again.

If Northerners want to have Sharia everything in the North, then let us have twoo autonomous regions of Nigeria, with devolved powers so that each region can practically do what they like. This kind of islamization of Nigeria through the back door will not work.

There is nothing like Christain Banking in Nigeria, so there wont be anything like islamic Banking. it simply wont fly.

Islamic banking is not nigerian problem,issues like nigerian lawmakers aka law breakers hijacking their official houses are

They hijacked d official houses that belongs to nigerian state just b-cos they had d opportunity of looting d nation dry

While UK, US or Germany can guarantee keeping the limits of islamic banking in check. In Nigeria we can not guarantee that and any practices with religious connotations whether Christain or Muslim should not be tolerated in the highest levels of Governance in Nigeria.

Those who disagree with my line of argument should justify the practice of Sharia in some Northern States beyond the provisions of the Nigerian constitution and then tell us who is actually being intolerant?

And u muderfuckers are here worrying about islamic banking.That naija is a mess religiously is b-cos d leaders are rogues

Yeah this is hw it starts and vey soon, it will become binding onn every bank that wants to operates in the north. We are not eating their lies, not this time.

Well,except the north can assure us of tollerance,and that this would not balloon into something else.
No one should blame southerners/xtians of being non-objective or intollerate of this,we just dont know what this would turn into in some few years,especially up north,
its a good system,no doubt,personally i dont mind operating with it,but sorry our skepticism is best at it not seeing the daylight

Only for Muslims,

No Christian wants to be Sharia compliance anyway,  That is why it is discriminatory and against what we should stand for,

But then again; it will be discriminatory not to let Muslims have their choice Finance style. Since Sharia prohibits interest, having Muslims bank with interest will be like force feeding them pork,

Islamic banks can only work in a country with majority Muslims and by majority I'm talking 80% and above,  It is their economic policies,

One reason Nigerian can't afford these financial system is because we borrow money from companies and world bank and pay interest (This problem was raised in pakistan)



NOW MY PROBLEM WITH IT GOES:

Now, in an economy that strives to pay debts through it's own strength, how will Islamic bank work?

Non islamic bank customers will pay for the interest in the money borrowed to educate Islamic bankers, build roads, hospitals etc, 

If the government borrow money from world bank to finance agriculture, The CBN, gives the money to Islamic bank users who are farmers and expected not to pay interest, how would CBN pay the interest to world bank?

Profit? Remember the profit is voluntarily shared; all that is required of the Islamic bank customer is to return the exact money borrowed. The CBN will now have to look to non sharia bank users who borrowed from that fund to pay the intrerest to imf!!!!!! Remember under the Islamic financing law, you can not take money from borrowers to replace interest though you can charge service fee

YOU ARE FREE TO PROVE ME WRONG BECAUSE I THINK MY ARGUMENT ISN'T CONCLUSIVE BUT IT IS WHAT WILL HAVE TO HAPPEN

This system can only work in an Islamic state. It is in in non Islamic states but how are they doing?

^^^Then is Europe or America predominantly Muslims? Your point is full of ignorance

Yes Islamic banking will be.For people saying that it will discriminate.The NSCIA has spoken.You should hold them responsible or the bank if anything of its kind happens.That's the assurance of its tolerance to other non-Muslims and also the issue of its merits in other countries before Nigeria.Also you've being told that Sanusi was not the person who initiated or licensed it.
You can't deprive Muslims what they want.Especially where it is not proven such has caused any problem.Islamic banking is just coming to Nigeria. Since its never being in Nigerian,you can't associate it to negative vices in the country and the fact that it has worked successfully/peacefully outside Nigeria speaks for it. There is no reason denying us the services period!

These countries are not practicing SLS version of Islamic Banking - they know better than that since it would have died a natural death in their constitutional courts.

Unfortunately by making this a religious affair SLS has built into his Islamic Bank the seed of its non-workability - Islamic Banks are not working out in those coutries where it is religiously-driven.

The reasons for its failure are obvious enough, but in Nigeria's case when it fails ignorant soldiers, like Boko Haram, are going to take it out on their brothers by declaring a "Conventional Banking Haram" war. As if our banks do not operate enough like small garrisons they will have to start installing BMB detection equipments!!!!!!!!!!!!!!!!!!

haka_nai:

^^^Then is Europe or America predominantly Muslims? Your point is full of ignorance  

The NSCIA has spoken? Meaning what? This is simply a reply to the CAN's comments. These organizations do not make public policy, but are mere commentators, perhaps influential commentators.

So we have heard them, but this resolves nothing - absolutely nothing.

haka_nai:

Yes Islamic banking will be.For people saying that it will discriminate.The NSCIA has spoken.You should hold them responsible or the bank if anything of its kind happens.That's the assurance of its tolerance to other non-Muslims and also the issue of its merits in other countries before Nigeria.Also you've being told that Sanusi was not the person who initiated or licensed it.
You can't deprive Muslims what they want.Especially where it is not proven such has caused any problem.Islamic banking is just coming to Nigeria. Since its never being in Nigerian,you can't associate it to negative vices in the country and the fact that it has worked successfully/peacefully outside Nigeria speaks for it. There is no reason denying us the services period!

They won't be short-changed but non-muslims will be obtaining credit with interest rates in double digits while the Muslim friends of Sanusi will be obtaining interest free-loans. Then when the Islamic Banks fail, the Nigerian Government will step in to bail it out.

haka_nai:

^^^Then is Europe or America predominantly Muslims? Your point is full of ignorance 

mehn you are sooooooo daaafffftttttt!!! OMG!!! IS THAT A WAY TO SOLVE THE PROBLEM I RAISED?


Yes Europe doesn't have aN islamic minority forcing islam on them AND the Islamic banks in europe doesn't require sharia compliance OLODO FOOL!! Are you this blinded by your love for foreign philosophy?

The only countries where the banks worked to a state of influencing the economies are Iran, Saudi Arabia and Malaysia. STOP SAYING IT IS BEING PRACTICED WORLD WIDE

OF the top ten biggest Islamic banks, IRAN HAS 7     Yeah right, it is a global phenomena that will help Nigeria!

Iran has 40% of the global islamic bank asset, Saudi has 30%, Malaysia has 15% while Pakistan and the rest of the world has 15% yeah it is a big global bank! And the asset is only $400b globally the rest trillions goes to wise banking!

The World Banks interest rate problem doesn't mean a thing to you does it? PHUCKING OLODO!!!

The ones in Europe and America are not SHARIA COMPLIANCE.

`

0lumide:

mehn you are sooooooo daaafffftttttt!!! OMG!!! IS THAT A WAY TO SOLVE THE PROBLEM I RAISED?


Yes Europe doesn't have aN islamic minority forcing islam on them AND the Islamic banks in europe doesn't require sharia compliance [/b]OLODO FOOL!! Are you this blinded by your love for foreign philosophy? lie

[b]The only countries where the banks worked to a state of influencing the economies are Iran, Saudi Arabia and Malaysia. STOP SAYING IT IS BEING PRACTICED WORLD WIDE lie

OF the top ten biggest Islamic banks, IRAN HAS 7     Yeah right, it is a global phenomena that will help Nigeria!

Iran has 40% of the global islamic bank asset, Saudi has 30%, Malaysia has 15% while Pakistan and the rest of the world has 15% yeah it is a big global bank! And the asset is only $400b globally the rest trillions goes to wise banking!

The World Banks interest rate problem doesn't mean a thing to you does it? PHUCKING OLODO!!!

The ones in Europe and America are not SHARIA COMPLIANCE. lie

`

Back at you. while you are at it check this one out  "http://www.islamic-bank.com/" then admit your being ignorant and daft.I could get you more if you want chairman OLODO!!!!Phucking Daft goat Please read more about Islamic bankings because you are still exibiting gross ignorance and stupidity.Islamic banking has more than $400 billion world wide! Ode

Katsumoto:

They won't be short-changed but non-muslims will be obtaining credit with interest rates in double digits while the Muslim friends of Sanusi will be obtaining interest free-loans. Then when the Islamic Banks fail, the Nigerian Government will step in to bail it out.

Are you another fortune teller I hear or what?You don't have any fact or obvious backing to prove its failure other than sentiments.I would even say, its prospect for survival is good.Looking at its track record in other countries.Comparing its record to your baseless conspiracy and misguided theories.I choose to ignore you.
c'mon as if Muslims don't have monies in the existing banks that the CBN keeps bailing out after your xtians bank exco steal the monies despite huge benefits and making cash with there monies.
Did you see the list of companies and peoples loans during the bank probes.they are your southern brothers predominantly.We rarely patronize to avoid interests.Won't you say you guys use our monies to sustain or start your business while the banks make cash on intetrest.Who is benefiting more?
Last i check Ibru refunded over 190 billion naira of Nigerians money and lying to share holders of significant profits.I remember your xtians/southern buddies shouting its a witch hunt.A grand northern conspiracy.until the courts got a conviction!
shame catch una.don't always let sentiments drive you.

koruji:

The NSCIA has spoken? Meaning what? This is simply a reply to the CAN's comments. These organizations do not make public policy, but are mere commentators, perhaps influential commentators.

So we have heard them, but this resolves nothing - absolutely nothing.

    Right about that!If only CAN had known that and left the CBN and policy makers deal with it.The NSCIA would ordinarily be quiet and have no need to suggest its uses.You say means "absolutely nothing"?You have no idea or you simply being naive
    Beats me sometimes the way people think of CBN.Considering that CBN is made of xtian and Muslim workers!How come the CBN comprising all are not claiming foul play.
      About public policy you can be sure the policy in place is for CBN of FGN.Some may like it,some may not.Its about variety.so we can choose or ignore.Just like other services and products in the country.We can go where we want and render/accept services of such.Public policy is done for the people.If atleast 70mill Nigerians say they want something then its only fair to listen.

haka_nai:


Is that another fortune teller I hear or what?You don't have any fact or obvious backing to prove that other than sentiments.That means you may be wrong.I would even say, its prospect for survival is good.Looking at its track record in other countries.Comparing its record to your baseless conspiracy and misguided theories.I choose to ignore you.

    c'mon as if Muslims don't have monies in the existing banks that the CBN keeps bailing out after your xtians bank exco steal the monies despite huge benefits and making cash with there monies.
   Did you see the list of companies and peoples loans during the bank probes.they are your southern brothers predominantly.We rarely patronize to avoid interests.Won't you say you guys use our monies to sustain or start your business while the banks make cash on intetrest.Who is benefiting more?
    Last i check Ibru refunded over 190 billion naira of Nigerians money and lying to share holders of significant profits.I remember your xtians/southern buddies shouting its a witch hunt.A grand northern conspiracy.until the courts got a conviction!
shame catch una.don't always let sentiments drive you.

I don't debate with people who personalise debates; I will let is slide since this is the first debate I am having with you. You were able to guess my background based on my name or the points I am making?

You seem to be saying that since some bank CEOs were found to have misappropiated funds, then conventional banking has failed or that Nigerians should equally not complain when the CBN bails out Islamic Banks. That is an arsinine argument since the CBN was protecting all depositors (Muslims included) from bank failures. There are numerous examples of well run conventional banks both within and outside Nigeria. My argument is about the viability of Islamic Banking and I am predicting that SLS will not let Islamic banks fail since he has made himself to be the spokesman of Islamic Banking in Nigeria.

What track record are you referring to? Seven of the ten largest Islamic banks are Iranian State-backed banks. Islamic banking has run into problems in Pakistan. Grameen Bank which claims to be an 'Islamic Bank' in Bangladesh and Malaysia charges Riba although it argues that its interests are lower than conventional bank interest rates even though it doesn't pay interest on savings accounts. If Islamic Banking is so viable, how come the richer Arab countries such as Saudi Arabia, U.A.E, Bahrain, Qatar, have very limited exposure to it? If it were so viable, those banks in Iran wouldn't be state owned.

Please provide the track record you are referring to if you so disagree.

Haka nai, why are you so Ignorant? Islamic banking is offered as a banking product in the UK it's not like HSBC and Bank of Nova Scotia!!!

islamic banks' Total asset is 750billion if you count Islamic banks that charge Haram and support Hadith!!!

The type Sanusi is cheering for has only 400billion bucks in asset world wide. Islamic Bank of UK is not a Bank like Sanusi is trying to build, it is a banking product. DAFT OLODO!!

Just like banks offer no banking fees for student, Banks in UK can use funds from islamic bank investors to give no interest loan!! Daft punk!!!

you posted a site made by Islamic bank to show me Islamic banking? Who do you think you are talking to? Did you even read the site? OMG

You are a product of outdated philosophy anyways so I'm not surprised by how daft you are,


The Islamic banks in Islamic states are state owned and state funded hence why they survived a bit, If Sanusi is looking to get Islamic banking in to Nigeria, Federal funds won't fund it unless they are willing to pay interest,

In the rich Arab world, this banking system isn't even popular at all. I support Muslims to do business as Allah pleases but no one will pay for their loses at all,


You really think many Nigerians, Muslim or Christian will invest in a no interest business? think again!!

Stop shoving it down people's throats that Islamic banks are being "enjoyed" worldwide because it isn't at all.

I think Christians should back off Islamic banking and let it slide; what they should be fighting against is paying the interests these Muslim bankers won't pay!

The bank is a stillborn! Dead on arrival watch in two years no investors!!

haka_nai:

[b]Yes Islamic banking will be.For people saying that it will discriminate.The NSCIA has spoken.You should hold them responsible or the bank if anything of its kind happens.[/b]That's the assurance of its tolerance to other non-Muslims and also the issue of its merits in other countries before Nigeria.Also you've being told that Sanusi was not the person who initiated or licensed it.
You can't deprive Muslims what they want.Especially where it is not proven such has caused any problem.Islamic banking is just coming to Nigeria. Since its never being in Nigerian,you can't associate it to negative vices in the country and the fact that it has worked successfully/peacefully outside Nigeria speaks for it. There is no reason denying us the services period!

Enough of political correctness. I don't know why even NSCIA is trying to please these people. They should just go and set up christian banks, Traditional banks, Igbo bank, Yoruba bank etc after all christians started going to Jerusalem (even though its not part of their religion) when government corruptly started using public funds to send people to Mecca. I have a feeling christians have been shouting because they can not set up christian banks.

Islamic banks will DISCRIMINATE. People should get used to that fact. Its a business for God's sake. It should set its rules based on its business model. The model surely will have target customers just like Indomie advertises all day using children because their target market is children.

If Zenith bank says I can not open account unless I deposit N250,000. Is that not discrimination? This is discrimination against the poor. if WEMA bank operates only in Yoruba land, is that not discrimination based on their target market. Federal Mortgage bank is set up for a reason, if you can not contribute, can you borrow money to build house from them? If I set up a private university and admit only christians or make the fees to be 2million naira per semester, is that not discriminatory? If I set up a company and employ only muslims, is that not discriminatory? Business is business, their is always a target, and you go about achieving such by focusing your energy on your target market. If your business fails, its your problem.

What is important is that government regulates the activity of private businesses to ensure people to dot take undue advantage. People are still reasoning like socialists when we are agitating that government hands off businesses.

Knowing what religion is to Nigerians, why not call it ethical banking or "Peoples bank" or even NAPEP and let peace reign?