http://tribune.com.ng/sat/index.php/news/7688-islamic-banking-is-illegal-court.html
Written by Tunde Oyesina,Abuja Saturday, 16 June 2012

A Federal High Court sitting in Abuja, on Friday, declared the non-interest financial institution operating under the principles of Islamic jurisprudence as illegal and unconstitutional.

Delivering judgement, in a suit filed by one Godwin Sunday Igboji, challenging the licence issued to Jaiz Bank by the Central Bank of Nigeria (CBN), Justice Gabriel Kolawole, held that had it not been that the plaintiff lacked the locus standi to institute the action, he would have nullified the licence issued to the Jaiz International Bank Plc to carry out Islamic banking in the country.

According to him,”There are no provisions in the CBN Act and the banks provided for in the Banks and other Financial Institutions Act (BOFIA) that empowers the CBN Governor, Sanusi Lamido Sanusi, to issue license for non-interest financial institution to operate under the principles of Islamic jurisprudence without the approval of the Head of State through the Minister of Finance.

‘’Unlike the other specialised bank, the Jaiz International Bank Plc can only be established in the country with the intervention of the National Assembly by amending the BOFIA Act.

‘’If not that the plaintiff has no locus standi to maintain this action, I would have nullified the illegal license issued to the Jaiz International Bank PLC by the CBN to operate non-interest banking under the principles of Islamic jurisprudence.

‘’This case is hereby struck out for lack of locus standi, but the AGF should take steps to remedy the situation, and further ensure that the CBN carries out its duties within the provisions of the law establishing it,” he argued.

Ogboji had asked the court to declare a license issued to Jaiz International Bank Plc by the Central Bank of Nigeria (CBN) illegal, null and void.

The plaintiff had joined the CBN Governor, and the Attorney-General of the Federation (AGF) as co-defendants.

He asked the court to hold that the CBN’s guidelines for the regulation and supervision of institutions offering non-interest financial services in Nigeria under Islamic commercial jurisprudence published in the Thisday newspaper of June 23, 2011 is ultra vires, illegal, null and void.

dasparrow: @Post

So what happens next? Are they going to close down Jaiz International bank? I personally see nothing wrong with Islamic banking because I love banks that don't charge interest rates on loans.

Kobojunkie:

Islamic law is not LEGAL according to Nigerian constitution. If you love it so much, go to countries where it is legal and take advantage of them to your hearts content. In Nigeria it is ILLEGAL and so should be done away with.

Kobojunkie:

Islamic law is not LEGAL according to Nigerian constitution. If you love it so much, go to countries where it is legal and take advantage of them to your hearts content. [b]In Nigeria it is ILLEGAL [/b]and so should be done away with.

witzsoul: Its realy a nice piece of talk, i want to say that , both Godwin, and the sitting judge have done amicably there there good justiciable service. The term locus standi literally refers to one having enough reason of infringment ,offence on personal rights from another, for which reason complaint is made. So, although Godwin had led such initiative, there must be a body representative of the ppl, or [b]govmt depmt of competent ineterest [/b]in such matter who must pursue the case in that capacity, to afford it the locus standi. With the little i know of this idea, its a good intiative from Godwin, good trial from the judge. Thanks..!

aguiyi:

you may need to expantiate on the bolded because you lawyers are good at using confusing terminologies. WHAT DO YOU MEAN BY COMPETENT INTEREST.

can an interest be incompetent? if yes how do we measure the competency of an interest

toba: lets start the debate now.

what if the NASS amends the BOFIA act which the judge talked about in his ruling?

dasparrow: @Post

So what happens next? Are they going to close down Jaiz International bank? I personally see nothing wrong with Islamic banking because I love banks that don't charge interest rates on loans.

Kobojunkie:

Islamic law is not LEGAL according to Nigerian constitution. If you love it so much, go to countries where it is legal and take advantage of them to your hearts content. In Nigeria it is ILLEGAL and so should be done away with

AjanleKoko:

The organization of 'Competent Interest' in this case would be the CBN, who issued the license to JAIZ.
The judge is saying he cannot issue an order nullifying the license if the licensor isn't present to argue their case.