[size=14pt]‘Over 28 million Muslims excluded from banking’[/size]
By Success Nwogu
Thursday, 28 Jul 2011


The Special Adviser to the Central Bank Governor on non-interest (Islamic) Banking in Nigeria, Dr. Bashir Umar, has said that about 28.45 million Muslims in Nigeria are excluded from banking.


He also said a sizeable number of Muslims had no confidence in the existing system, saying this was an effective financial exclusion.


He added that the maintenance of public trust and confidence was essential to the soundness and stability of the financial system.


According to him, Islamic banking was necessary to fast-track financial services and infrastructure financing in the country.


Umar spoke on Wednesday in Ilorin at a seminar on the “Non-interest (Islamic) banking in Nigeria: Opportunities and challenges”.


He said Islamic banking would integrate many Muslims into the banking and financial services.


The seminar was jointly organised by Al-Barka Trust Fund and Department of Islamic Law, Faculty of Law, University of Ilorin.


Umar said, “Financial inclusion will bring a lot of benefit to the economy. Financial inclusion is a constitutional right of every citizen. Non-interest banking is set to achieve financial inclusion. Islamic banking was introduced by secular states to achieve this goal; it is set to achieve it in Nigeria. Other forms of non-interest banking have the same potential if introduced along the lines of introducing Islamic banking.”


The Business Manager, Diamond Bank, Regional headquarters, Kano, Mr. Muhammad Shuaib, who also spoke at the lecture, said there was lack of adequate personnel to handle Islamic banking in the country, adding that more personnel should be trained to make the operation of the Islamic banking by Nigerians operational and effective.

http://www.punchng.com/Articl.aspx?theartic=Art201107281612823

Is it because they're looking/waiting for an Islamic Bank?. Do all Christians in Nigeria have bank accounts?

Jonathan do something!!!!

This is just wrong!!! Does all christians have bank accounts? there are probably more Xtians excluded from banking too, instead of finding a way to include everybody, they are finding a way to include Muslims,

Somebody stop these goons with foof heads!!

Islamic Banking can proceed if they want. This system has such a high information requirement that cannot be met on a large scale in the modern world, and YOU HAVE TO PAY INTEREST a.k.a PROFIT RATE on any money you borrow.

As such, the bank has to be either subsidized or remain at the level of small communities. The main potential sources of katakata are the following:

1. Nigeria's money would somehow be used to subsidize this business
2. If they are not following the same disclosure rules
3. If they engage in discrimination against christians
4. Some mallam actualy begins taking the "Islamic" on the banking system religiously
5. Some "conventional banking haram" group starts a violent campaign against regular banks

There is a very good reason why the bank has being loitering around Nigeria since 2003 and there is a reason why Sanusi & his cohorts are all of a sudden galvanized.

I am only sorry for the gullible true-believers who think these people are trying to do them a religious favor. If they have ears let them hear: This bank is not for paupers, it is for the rich to get richer. Period!

Visit this site and you would think the contents were 2011s, but you would be wrong. There are dates on some of the items - dates to 2008: http://www.jaizinternationalplc.com/www.jaizinternationalplc.com/index.html

;d ;d ;d ;d ;d :d :d :d :d :d :d :d

Where did he get the # from?

What is the # for christians and other religions? By zone?

Why is Islamic banking the solution? I think Katsumoto showed here earlier how in practice this banking system doesn't help the poor very much

It pisses me off how they are trying to equate non-interest banking and islamic, btw

Dat s y I said all hausa/fulanis are bokoHaram! They dont only hate conventional banks, they also hate conventional education. How many of them do we have, currently, going to conventnal sculs? Is t bcus there ar no sculs? Anser: NO, reason: they hate western education and anytng associated wt t! That is y they ar clamourng fo Arabic/Islamic constitution, a.k.a Sharia law.
Mind u, d whole idea is a brainchild of Emir of Saukoto! Who is a mordern day embodiment of Usman Danfodio.

Dat s y I said all hausa/fulanis are bokoHaram! They dont only hate conventional banks, they also hate conventional education. How many of them do we have, currently, going to conventnal sculs? Is t bcus there ar no sculs? Anser: NO, reason: they hate western education and anytng associated wt t! That is y they ar clamourng fo Arabic/Islamic constitution, a.k.a Sharia law.
Mind u, d whole idea is a brainchild of Emir of Saukoto! Who is a mordern day embodiment of Usman Danfodio, Jihad continues!

cogitoErgo:

Dat s y I said all hausa/fulanis are bokoHaram! They dont only hate conventional banks, they also hate conventional education. How many of them do we have, currently, going to conventnal sculs? Is t bcus there ar no sculs? Anser: NO, reason: they hate western education and anytng associated wt t! That is y they ar clamourng fo Arabic/Islamic constitution, a.k.a Sharia law.
Mind u, d whole idea is a brainchild of Emir of Saukoto! Who is a mordern day embodiment of Usman Danfodio, Jihad continues!

Then Keep Watching!!!

koruji:

Islamic Banking can proceed if they want. This system has such a high information requirement that cannot be met on a large scale in the modern world, and YOU HAVE TO PAY INTEREST a.k.a PROFIT RATE on any money you borrow.

As such, the bank has to be either subsidized or remain at the level of small communities. The main potential sources of katakata are the following:

1. Nigeria's money would somehow be used to subsidize this business
2. If they are not following the same disclosure rules
3. If they engage in discrimination against christians
4. Some mallam actualy begins taking the "Islamic" on the banking system religiously
5. Some "conventional banking haram" group starts a violent campaign against regular banks

There is a very good reason why the bank has being loitering around Nigeria since 2003 and there is a reason why Sanusi & his cohorts are all of a sudden galvanized.

I am only sorry for the gullible true-believers who think these people are trying to do them a religious favor. If they have ears let them hear: This bank is not for paupers, it is for the rich to get richer. Period!

Visit this site and you would think the contents were 2011s, but you would be wrong. There are dates on some of the items - dates to 2008: http://www.jaizinternationalplc.com/www.jaizinternationalplc.com/index.html

You bring up highly speculative (and several unlikely) reasons and then base your analysis on this weak foundation. Please endeavor to base your opposition on facts and sound logic.

cogitoErgo:

Dat s y I said all hausa/fulanis are bokoHaram! They dont only hate conventional banks, they also hate conventional education. How many of them do we have, currently, going to conventnal sculs? Is t bcus there ar no sculs? Anser: NO, reason: they hate western education and anytng associated wt t! That is y they ar clamourng fo Arabic/Islamic constitution, a.k.a Sharia law.
Mind u, d whole idea is a brainchild of Emir of Saukoto! Who is a mordern day embodiment of Usman Danfodio, Jihad continues!

Is that the new way of spelling Sokoto?

ekt_bear:

Where did he get the # from?

What is the # for christians and other religions? By zone?

There is nothing barring Christians from using any of the conventional banks. I am yet to hear of any one of the approximately 200000* Christian Gospel preachers in Nigeria railing about the evils of conventional banking. So any Christian not using the conventional banks is doing it for his own reasons.
This is in sharp contrast to the condemnation of interest based banking in the Islamic teaching that likely prevents some devout muslims from using conventional banking services.

ekt_bear:


Why is Islamic banking the solution? I think Katsumoto showed here earlier how in practice this banking system doesn't help the poor very much

The objective is to provide a widely practised non-interest banking model which is compliant with the sensibilities of muslims, bringing a compliant version of banking to the 'unbanked'. Please do not concern yourself with the 'helping the poor' part

ekt_bear:


It pisses me off how they are trying to equate non-interest banking and islamic, btw

Can you at least TRY and read the CBN guidelines? Islamic banking is specified as a model of NIB, not the only NIB type. CBN also states that guidelines for other models of NIB will be issued shortly. What's the problem?

texazzpete:

There is nothing barring Christians from using any of the conventional banks. I am yet to hear of any one of the approximately 200000* Christian Gospel preachers in Nigeria railing about the evils of conventional banking. So any Christian not using the conventional banks is doing it for his own reasons.
This is in sharp contrast to the condemnation of interest based banking in the Islamic teaching that likely prevents some devout muslims from using conventional banking services.

This is a very interesting hypothesis of yours. But what evidence do we have of it being true? What fraction of the 28 million unbanked are unbanked for religious reasons, for example? This is the sort of basic question one should ask, rather than giving statistics that may or may not be relevant. If it turns out that 99% of these 28 million say that they are unbanked for religious reasons, then that would be something perhaps worth dealing with. If 1%, then probably not worth the effort.

The objective is to provide a widely practised non-interest banking model which is compliant with the sensibilities of muslims, bringing a compliant version of banking to the 'unbanked'. Please do not concern yourself with the 'helping the poor' part

OK, so I'm making an assumption here that most of these 28 million are lower income individuals. This could be wrong.

Can you at least TRY and read the CBN guidelines? Islamic banking is specified as a model of NIB, not the only NIB type. CBN also states that guidelines for other models of NIB will be issued shortly. What's the problem?

Why not have a single non-interest banking framework rather than N different ones? What advantage does Islamic banking specifically have over a secular one?

ekt_bear:

Why not have a single non-interest banking framework rather than N different ones? What advantage does Islamic banking specifically have over a secular one?

Any other NIB model could easily advance you funds to open brothels, beer parlors and pig farms. Islamic banking will not.
From the CBN guidelines (seriously, why will you not even read this)

Islamic banking as one of the models of non-interest banking, serves the same purpose of providing financial services as do conventional financial institutions save that it operates in accordance with principles and rules of Islamic commercial jurisprudence that generally recognizes profit and loss sharing and the prohibition of interest, as a model.
Other non- permissible transactions include those involving any of the following:
• uncertainty or ambiguity relating to the subject matter, terms or conditions;
• gambling;
• speculation;
• unjust enrichment;
• exploitation/unfair trade practices;
• dealings in pork, alcohol, arms & ammunition, pornography and;
• other transactions, products, goods or services which are not compliant with the rules and principles of Islamic commercial jurisprudence.
Given the increasing number of requests from persons, banks and other financial institutions desiring to offer non-interest banking products and services based on Islamic commercial jurisprudence in Nigeria, the CBN has developed these guidelines for the regulation and supervision of institutions offering Islamic financial services (IIFS) referred to in this guideline.

There's enough distinct elements of Islamic banking to set it apart from other non-interest banking models. Hence the specialized guidelines being issued.

I don't understand, though. Given your strident opposition to Islamic banking, why would you wish for generic guidelines for all NIB models. I'd think you'd want a more critical look at the guidelines surrounding this specific implementation.

@texazzpete: OK, I've read through the first few pages and skimmed through the rest (http://www.cenbank.org/out/2011/circulars/fpr/non-interest%20banking%20guidelines%20june%2020%202011.pdf).

I guess my question is, why spend so much time focusing on Islamic banking? Even in this document, the title discusses non-interest banking, yet most of the doc is on islamic banking specifically. Why is this? Why is Islamic banking the most important, most relevant, and most necessary form of non-interest banking in Nigeria?

Why not instead just champion a form of non-interest banking with no religious sentiment attached to it? What does generic non-interest banking lack that Islamic banking provides?

This is why I am so suspicious of this. Non-interest banking will satisfy the needs of most Muslims or people whose religion doesn't permit them to charge interest or I guess pay interest, right? So why go religious if secular will suffice?

ekt_bear:



I guess my question is, why spend so much time focusing on Islamic banking? Even in this document, the title discusses non-interest banking, yet most of the doc is on islamic banking specifically. Why is this? Why is Islamic banking the most important, most relevant, and most necessary form of non-interest banking in Nigeria?

Why not instead just champion a form of non-interest banking with no religious sentiment attached to it? What does generic non-interest banking lack that Islamic banking provides?

This is why I am so suspicious of this.

Thank you and 300 gbosas for you. E go better for you and your grand children.

Pete strikes me as a fair-minded fellow. So I'm trying to find out what he sees here that I'm missing. From my perspective, all of this seems very shady.

koruji:

Islamic Banking can proceed if they want. This system has such a high information requirement that cannot be met on a large scale in the modern world, and YOU HAVE TO PAY INTEREST a.k.a PROFIT RATE on any money you borrow.

As such, the bank has to be either subsidized or remain at the level of small communities. The main potential sources of katakata are the following:

1. Nigeria's money would somehow be used to subsidize this business
2. If they are not following the same disclosure rules
3. If they engage in discrimination against christians
4. Some mallam actualy begins taking the "Islamic" on the banking system religiously
5. Some "conventional banking haram" group starts a violent campaign against regular banks

There is a very good reason why the bank has being loitering around Nigeria since 2003 and there is a reason why Sanusi & his cohorts are all of a sudden galvanized.

I am only sorry for the gullible true-believers who think these people are trying to do them a religious favor. If they have ears let them hear: This bank is not for paupers, it is for the rich to get richer. Period!

Visit this site and you would think the contents were 2011s, but you would be wrong. There are dates on some of the items - dates to 2008: http://www.jaizinternationalplc.com/www.jaizinternationalplc.com/index.html

You are spot on. Practically all "Islamic" banks are owned by pork chomping Christians, these banks in turn have shares in gambling and defence businesses.

"Islamic" banking has zero to do with Islam and everything to do with profit. Religion is a tool with which to clobber the vulnerable, hopeless and gullible.
In Nigeria's case though, it is a much more cynical weapon; it is the tool of the core-Northern elite to nurture and propagate their hegemonistic ambitions. It is all a long range plan of divide and rule; the aim is to "seem" to address the needs long suffering Muslims, as against the rest of Nigeria, a subtle, but nevertheless dangerous and obnoxious divide and rule tactic.

Boko haram has been seen through, headed away from the senseless bloodbath it was meant to provoke and confined to the streets of Maidugury. Even more than that, security agencies on the lookout for al qaeda operatives have their beams intensely focussed on the core-North. With loss staring them in the face, they have reached for a desperate measure; maybe the next Northern riots or bombs will target "Christian" banks.
The World is watching and the Mutallabs in US gulag are singing and spilling. Its a long chess game that the mallams have already lost.

In the meantime, Middle Belters and Southerners with the means should go all out to 100% own these banks, control the flow of cash from source to destination, own the street.

Sanusi is a man from an extremely priviledged home, who chose to shun Oxford, Cambridge, Harvard, the LSE etc; he chose to sit a a degree in Sharia and Islamic Studies from the African International University in the dust ridden backwater, Khartoum, Sudan. A very strange decision for a young man from a super connected, moneyed background at an age when it is natural that his mind, like those of his peers should have been on girls. That is a very instructive point about the mans makeup.

So, you are saying SLS knows on which side his bread is buttered.

Interesting viewpoints - a little bit more conspiratorial than I would think, but still interesting. There is definitely an agenda here, but it seems to me that it is basically that some people are being promised  a huge, but phantom, inflow of cash that their greedy eyes cannot pass-off.

The real reason behind such phantom promises escapes me - there are just too many investment destinations in the world for some bank to be hanging around the shores of Nigeria since 2003!!!

Beaf:

You are spot on. Practically all "Islamic" banks are owned by pork chomping Christians, these banks in turn have shares in gambling and defence businesses.

"Islamic" banking has zero to do with Islam and everything to do with profit. Religion is a tool with which to clobber the vulnerable, hopeless and gullible.
In Nigeria's case though, it is a much more cynical weapon; it is the tool of the core-Northern elite to nurture and propagate their hegemonistic ambitions. It is all a long range plan of divide and rule; the aim is to "seem" to address the needs long suffering Muslims, as against the rest of Nigeria, a subtle, but nevertheless dangerous and obnoxious divide and rule tactic.

Boko haram has been seen through, headed away from the senseless bloodbath it was meant to provoke and confined to the streets of Maidugury. Even more than that, security agencies on the lookout for al qaeda operatives have their beams intensely focussed on the core-North. With loss staring them in the face, they have reached for a desperate measure; maybe the next Northern riots or bombs will target "Christian" banks.
The World is watching and the Mutallabs in US gulag are singing and spilling. Its a long chess game that the mallams have already lost.

In the meantime, Middle Belters and Southerners with the means should go all out to 100% own these banks, control the flow of cash from source to destination, own the street.

Sanusi is a man from an extremely priviledged home, who chose to shun Oxford, Cambridge, Harvard, the LSE etc; he chose to sit a a degree in Sharia and Islamic Studies from the African International University in the dust ridden backwater, Khartoum, Sudan. A very strange decision for a young man from a super connected, moneyed background at an age when it is natural that his mind, like those of his peers should have been on girls. That is a very instructive point about the mans makeup.

koruji:

So, you are saying SLS knows on which side his bread is buttered.

Interesting viewpoints - a little bit more conspiratorial than I would think, but still interesting. There is definitely an agenda here, but it seems to me that it is basically that some people are being promised  a huge, but phantom, inflow of cash that their greedy eyes cannot pass-off.

The real reason behind such phantom promises escapes me - there are just too many investment destinations in the world for some bank to be hanging around the shores of Nigeria since 2003!!!

It just happens that another pesky Southern "infidel," Olusegun Obasanjo was President of Nigeria in 2003 and not exactly obeying agreed "orders." Sharia kicked off in roughly the same time frame.

Coincidence?