₦airaland Forum

maclatunji:
It seems to me that you are the one who wants to bring the conflict. Oga, a leader leads. So if as a Central Bank Governor you see the benefits of Islamic banking, and know it is in the best interest of the economy, you will not talk about it or articulate your opinions? You will just keep mute and be looking like a mugu when people seek to undermine such a policy.

maclatunji:
This man has hit the nail on the head. People who have vision might be scarce but they do exist.

X-factoria:
Gullible soul! You can't discern image laundering? So everyone that is anti-PDP is set out to rescue Nigeria from itself? If you have said "to rescue Nigeria for his pockets", I would have believed you.

By Joke Kujenya

WORK on the complete reconstruction and modernisation of the Lagos-Ibadan Expressway is set to begin, the concessionaire, Bi-Courtney Highway Services Limited, has said.

While speaking with the reporters, Bi-Courtney’s Head of Communications and Media Relations, Mr. Dipo Kehinde, explained that the delay could in no way be blamed on the company, and was due largely to the bureaucracy of having its design approved as required by the terms of the concession.

He said  the concession is on Design-Build-Operate-Transfer (DBOT) basis, adding that the company needed to get its design approved by the Federal Ministry of Works before work could begin, and the approval was only given on May 10 because of frequent changes of Ministers.

Kehinde said: “Now that the final design has been approved, we are embarking on restoration work to ease the pains of motorists, and our men have moved out to start the basic things now.

“We have also secured the funds needed, though not from Nigeria. Money is not an issue. We are ready to start work full blast, once the rainy season is over. As you know, there is no way you can build roads during the rains.”

He assured Nigerians that Bi-Courtney would deliver a first-class project that it has become noted for, arguing that the project was given to the company in the first instance because of its track record.

“Every project that we have been given in this country, we were not given because government liked the face of Bi-Courtney, but, it has been based on our track record,’’ Kehinde added,

•As US, EU condemn bombings in Nigeria
Written by Taiwo Adisa, Ayodele Adesanmi and Christian Okeke, Abuja Wednesday, 29 June 2011

THE Senate, on Tuesday, summoned the nation’s security chiefs over incessant bomb attacks by members of the Boko Haram sect.

The summon was sequel to a motion moved by Senator Eta Enang over incessant killings, as a result of bomb blast attributed to members of the sect.

The reference point, however, was the June 16 bomb blast at the Police Headquarters, Abuja, for which the Boko Haram sect claimed responsibility.

The Senate said that the briefing by the security chiefs would give the chamber a comprehensive situation report about the bombings.

The security chiefs are also expected to tell the Senate how they intend to tackle the menace.

Those summoned included the Inspector General of Police, Hafiz Ringim; the Chief of Defence Staff, Oluseyi Petinrin, who would lead all the service chiefs and the Director-General of the State Security Service (SSS), Ita Ekpeyong.

According to Senate tradition, the briefing would be held behind closed doors.

Pursuant to Order 42 and 52 of the Senate Standing Orders, 2007 as amended, Senator Enang moved a motion, which urged the Senate to discuss the June 16 bomb blast at the Police Headquarters, saying that it was a source for worry.

Deputy Senate President, Ike Ekweremadu, in his contribution, stated that the development was not only of “national importance but also a national emergency.”

Another senator who contributed to the motion, former vice chairman of the Drugs, Narcotics and Financial Crimes Committee, Senator Dahiru Kuta, blamed the IGP for what he called ungarded statements on the sect.

He said: “Our security agencies must weigh their words before doing anything. It was wrong for the IGP to say he wanted to deal with them, when he never knew they were planning against him.”

Senator Sola Adeyeye, who was in the House of Representatives from 2003 to 2011, also said that the level of insecurity in the country was worrisome and that even highly placed Nigerians were no longer safe.

“All patriots must be saddened by these events and they must wake up. What we witnessed in Abuja shows that even the IGP cannot boast of his own security. It, therefore, means that if the IGP cannot boast of his own security, then, the Senate president cannot boast of his own security, because he depends on the IGP for his security.

“Very urgently, we must summon the security agencies to tell us the details of what transpired and what they want to do to contain the situation,” he stated.

Another former member of the House Representatives from Kaduna State, Senator Datti Baba-Ahmed, however, differed with his colleagues, saying that the motion was unnecessary. He said that there was no basis for Senate to dabble into the matter.

But the former Majority Leader in the House of Representatives, Senator Abdul Ningi, urged senators to intervene and invite security chiefs for proper briefing on the security situation.

The Senate, thereafter, resolved to summon the service chiefs, but no date was fixed yet for their appearance.

Meanwhile, the United States government and the European Union (EU), on Tuesday, described the bombings and attacks in Borno State as an affront to the rule of law and democratic principles in Nigeria.

They condemned the acts and noted that there should be no impunity for the perpetrators.

The Heads of Mission of the European Union and the United States in Nigeria disclosed this in Abuja, in a joint statement sent to the Nigerian Tribune and signed by the Ambassador of the EU in Nigeria, Dr David MacRae.

They expressed shock over the bombings and maintained that there was no place in the society for the horrific acts of violence.

In the statement, the envoys expressed their thoughts and extended their deepest sympathies to the families and friends of those killed in the bombings.

President Barack Obama had, early in the year, condemned the bomb attack near an army barracks in Abuja, which reportedly killed more than 20 people and injured many more.

He maintained that the killing of innocent civilians, who were simply gathering like so many people around the world to celebrate the beginning of a New Year, further demonstrated the bankrupt vision of those who carried out the attack.

The EU Heads of Mission had also urged the Nigerian authorities to take the necessary steps to bring perpetrators of the violence to account and to adopt measures to protect the civilian population effectively, irrespective of ethnic or religious affiliation.

He said such action would be essential to avoid further escalation of violence, promote inter-ethnic and inter-religious dialogue and acknowledge diversity as an asset for the development of an open and pluralistic society.

apoti:
ABUJA—THE United States and European Union, yesterday, condemned the spate of bombings and assassinations particularly by Islamic sect, Boko Haram in Maiduguri, Borno State capital which have killed more than 150 people so far this year and tasked President Goodluck Jonathan to fish out the perpetrators.

The US and EU missions in a joint statement said: “The Heads of Mission of the European Union and the United States of America in Nigeria express deep concern over the  bombings and attacks in Borno State. The latest of these on Sunday 26 June,  reportedly resulted in at least 25 deaths. We condemn such acts, which are an affront to the rule of law and democratic principles.


There is no place in society for these horrific  acts of violence and there should be no impunity for the perpetrators. Our thoughts and deepest sympathies are with the families and friends of those killed.”

In its reaction, Amnesty International in a statement said: “Boko Haram must stop its reign of terror in the country. No cause can justify the deliberate targeting of civilians. The Nigerian government can only ensure safety by investing heavily in reforming the criminal justice system, so that the perpetrators of these attacks and other human rights abuses can be properly investigated, arrested and prosecuted in fair trials without recourse to the death penalty.”

http://www.vanguardngr.com/2011/06/boko-haram-us-eu-ask-jonathan-to-punish-bombers/

chamber2:
You just spoke my mind and confusion.I have been thinking, why would a cbn governor champion the course of establishing a particular bank?Why didn't previous cbn governors not introduce the islamic banking  even after nursing the idea?

There is nothing wrong with the islamic banking, but there is something wrong with the way and manner SLS is going about it.This has made most of us suspicious and apprehensive.In a secular state such as ours, most things need to be handled with great care.In countries such as Malaysia, Iran etc where islamic banking is practiced there is no much division in terms of ethnic-religious compartments.Even in this countries there is no evidence to suggest that the introduction of islamic banking has helped improve the lots of the populace.Iran is still riddled with poverty, misery and chaos, Singapore has left Malaysia and joined the league of developed countries.The bulk of businesses in Malaysia are owned and operated by the Chinese and other foreigners who don't even have access to interest free loans.So, why do we need islamic banking in Nigeria?Is islamic banking going to be the messiah of our banking problems?I don't think so.

We are not against anything islamic as most people have claimed.We are not just comfortable with the establishment of an islamic bank in a secular society, especially when the call is coming from someone who is expected to act as an umpire. And our experiences with the northern muslims over the years have put us in doubt as in genuineness of their actions.

Nigeria is a country where everybody lives in fear.We are almost afraid of everything and cannot even trust our neighbours.So, I would advise that SLS concentrates on his job as the CBN governor- maintaining macro-economic stability, and free himself from political and religious contamination.

Tuesday, 28 June 2011 00:00 BusinessDay Staff

•500 Navy personnel deployed

Security was tightened in and around Maiduguri on Monday after suspected Islamists tossed bombs and fired on a crowded beer garden killing at least 25 people, security sources said.

Sunday’s attack caused one of the single-largest casualty tolls in the troubled northern city in recent months and coincided with the assumption of control of security operations there by a special task force of crack troops and other personnel.
A military officer said security had been scaled up in the city following the attack.

“The JTF (joint task force) began operations in Maiduguri yesterday with the deployment of more troops into the city, including 500 navy personnel,” said a senior military officer who asked not to be named as he does not have clearance to speak with journalists.

“The unit is now in charge of security in the city and the responsibility of combating the spate of attacks in the metropolis is in its hands,” the officer added.

Two men riding motorbikes hurled three bombs into a large beer garden, fired some shots and sped away after the shock attack on Sunday evening, security sources told AFP by telephone from Maiduguri, capital of Borno state.

“The attackers, believed to be Boko Haram members, threw bombs and fired indiscriminate gun shots on a packed tavern at Dala Kabompi neighbourhood, killing at least 25 people and seriously injuring around 30 others,” a police superintendent said.

Emmanuel Okon, who sells charcoal-grilled beef on the fringes of the tavern, said: “I just heard a loud bang followed by sporadic shootings and plumes of black smoke filled the area with people screaming and running in all directions.
“The wounded and the dead lay on the ground and the place was littered with broken bottles and glasses and,  shoes,” he said.

When asked for further details on the attack, Mohammed Jinjiri Abubakar, the police commissioner for Borno State, declined to elaborate, saying that control for security had passed to the new task force.

The force, fashioned like the ones operating in the oil region of the Niger Delta and the sectarian clashes prone central city of Jos, is tasked with combating the wave of bomb attacks and shootings credited to the sect members.

Boko Haram, which staged a short-lived uprising in 2009, has been blamed for what have become almost daily attacks and had hitherto targeted mainly police and military personnel, politicians, communities and religious leaders.

It has in recent months also bombed police stations, churches and staged a prison raid.

The group claimed responsibility for the attack, 10 days ago, on the police headquarters in the Nigerian capital, Abuja that killed at least two persons, including a policeman, saying their target was the police Inspector General.

The sect also said it was behind an attack on a beer garden in a military barracks in northern Bauchi city that killed over a dozen people, hours after the inauguration of President Goodluck Jonathan.

Boko Haram, whose name means “Western education is a sin”, launched an uprising in 2009 which was put down by a brutal military assault that left hundreds dead, most of them its members.

By Ifedayo Adebayo
June 28, 2011 12:37AM

As the Central Bank of Nigeria (CBN) gets set to issue licences to Islamic banking operators despite various religious controversies the matter has generated, a lawyer, Osuagwu Ugochuckwu, has explained the problem with the initiative to be its failure to make provision and provide guidelines for other forms of non-interest banking besides the Islamic model.

According to him, “I think the public and the CBN have missed the point on this issue. I think the problem is with the CBN. It failed to make provision and guidelines for other forms of non-interest banking aside Islamic model. Unless they do this, the public will view the action of Sanusi as unconstitutional vis a vis Sections,10,16 and 38(1) 1999 Constitution.”

Revealing his position to NEXT via e-mail, Mr Ugochukwu, an Abuja based lawyer, said until the central bank addresses the various controversies surrounding non-interest banking in Nigeria, the issue of sentiment cannot be detached from its establishment.

No religious bias
In his own view, Femi Adekomi, a chartered accountant would like Lamido Sanusi, the CBN governor, and other stakeholders to understand that Nigeria is presently combustible, as every development, political and otherwise, have been tied to religion.

“Nigerians are very religious and the stakeholders involved should know and respect this. If the Christians says we want to have Christian banking, or Babalawos says it is time for Ifa banking, would they make professional provision for it? So, don’t get me wrong, it is worldwide and generally accepted, but not widely practised, due to its religious nature and there is nothing saying we should not respect that in Nigeria too,” Mr Adekomi said.

Supporting its guidelines for Islamic banking operations as an issue of non-bias, the CBN says it recognised two types of non-interest banking: non-interest financial products and services based on principles of Islamic commercial jurisprudence, as well as financial products and services based on any other established rules and principles. It however assured on its readiness to issue guidelines pertinent to other types of banking to individuals and groups wishing to practice non-interest banking based on established rules and principles other than Islamic.

A matter of law

However, according to Eghes Eyieyien, chief executive officer of Pharez Group, a risk ratings and business consulting/investments firm, the guidelines stand in complete contravention of an existing law on non-interest banking. “How could you, without changing that law, issue guidelines contradicting the law? He said if the Central Bank wants to license any type of banking that is in compliance with any religious doctrine, then it must go the whole hog by setting in motion steps towards amending the section of the Banks and Other Financial Institutions Act (BOFIA), which regulates operations in the financial services industry and clearly forbids such.

“This is not about religion. It is about constitutionality, it is about professionalism, it is about the law,” Mr Eyieyien said.

LagosShia:
why are you acting dumb? you're the one comparing apples to oranges and making it look that someone is forcing another or imposing something.if a group of rich muslim businessmen come out to use their money to establish an islamic bank,CBN cannot refuse them a license just as the government cannot stop Nigerian Breweries from producing beer.we are not talking about what boko haram thinks or what your zealot christian leaders say.we are talking about what is official and what the government does and what the CBN does.do you get that?it does not mean it is the governor of the CBN that is "imposing" it or establishing it.sanusi or anyone cannot deny them a license.get your facts straight.

i blame sanusi for coming out to take the time to explain a simple issue to nigerians.he should not have done that because his work is simply to regulate the banking sector and not to enter into such issues.he simply did his work by issuing a license.that license cannot be denied to that bank because it is interest-free or a so called "islamic bank".even ECO bank in one of their branches in west africa claims to be "sharia compliant" in a bill board to attract muslim faithfuls and make more gain.

so why not ask the government to ban the building of mosques?what does having an interest free financial institution got to do with bombing or violence?if the muslim businessmen are rich enough to establish a bank then why do you think your nonsense can stop them?

LagosShia:
i can also tell you that nigeria is not a christian country.your words are very funny.because i am a muslim and i do not eat pork or drink alcohol does not give me the right to start campaigning against those who sell or eat alcohol and pork.if i do not want alcohol and pork,i am free not to eat or sell them.if you do not want "islamic banking" or non-interest bank,then you're free not to deal or bank with it.but you can do nothing to stop me from having it.and by the way i am not a northerner.

LagosShia:
when has sanusi or any muslim come out to say interest banks must stop collecting or giving interest?has he imposed islamic banking on them?no!so why dont you respect the choice of others too?or is it just an attempt to prevent muslims from seeing the light and practicing their own religion?

J12:
There's nothing wrong introducing this sort of banking in Nigeria. They are not forcing you to change your religious values or trying to "Islamize" Nigeria. If you don't want to bank with them, then don't.

maclatunji:
No muslim in Nigeria should have any business with poverty. Now with Islamic banking we can begin to implement proper Zakat collection and distribution. Those that want to burst their jugular vein with hypertension because of it are free to do so, it will not change a thing. There are many people who are willing to take muslim money without qualms, ask Manchester City Football Club if you are in doubt.

ndu_chucks:
Why? Beacause he is implementing the Islamic Banking system recognized world-wide, and was designed and customized for Nigeria by Soludo?

By Nnamdi Charles Nwokedi
June 25, 2011 10:29AM

My good friend called me up to tell me that he had extra tickets to the inauguration ball and a litany of other festivities scheduled to mark the inauguration of the newly elected president of Nigeria, Goodluck Jonathan.

The next day, I hopped on a plane and went off to Abuja to attend the presidential banquet as we call it here in Nigeria. I had been privileged to attend two of the previous three presidential banquets, which I felt were characterised by a sense of hope and optimism, and perhaps, endless possibilities of what the emergence of the new administration might portend for our great nation and our new democracy.

What struck me this time, however, was the palpable air of desperation that pervaded the atmosphere of the occasion. The entire environment was completely devoid of the usual excitement and back-slapping which would normally characterise such an event. Was it the rain, perhaps, that made the entire occasion seem like an evening out with a large wet rag? I think not.

First, there was this silent fear about the security situation in the nation, people were laughing but the laughter did not reach their eyes. Moreover, the entire mobile phone system in Abuja had been jammed in a bid to frustrate any would-be technology-savvy terrorists who might want to detonate a bomb with their cell phone. This made not a few people a little nervous, wondering, as a lady said to me, if there was no superior technology that could override or supercede the jamming system.

I know that politicians have become increasingly desperate over the years, but I have not seen them this eager to land a position, land something, anything, as I perceived from them all weekend. Ninety percent of the people I met at the banquet and at the international conference centre - the businessmen, the politicians, even former ministers - were hustling, jockeying and networking.

It was a case of a hustler hustling hustlers. People would meet you, look you over carefully and wonder what you could do for them, not knowing if you were there on account of the president or the first lady. It was hilarious. But, in a way, heart rending as well. So much so because what I saw at the seat of power, so to speak, was symptomatic of the situation of Nigeria and the condition of Nigerians - hope surrounded by desperation.

The inaugural ball went on without the panache that would be expected at an event of such significance. Victor Uwaifo has had his place in the sun, but he was not the right musician to have entertained at such an auspicious event. One or two groups from a plethora of neo-artistes could have been invited to hold sway, electrifying the atmosphere and signifying a new beginning - lending credence to the sign of things to come.

The evening was rather drab and boring. The buffet was not superb, and apart from one or two highlights such as when the president danced with the first lady, the evening crept away ignominiously and ended rather abruptly. As we left the hall one of the guests swiped a lone apple off a table, and an already overweight waiter that looked like a retired civil servant was overheard complaining bitterly, ‘Nna, this big man no even wan leave small apple for boys. Na wa o!'

Looking to the president

As the occasion progressed and Ben Bruce was doing his utmost to lighten the mood and spruce up the event, I looked at the president long and hard and, for the first time in my life, I truly felt sorry for a third world leader. Does this man understand, I wonder, the gravity of the promises he made to the desperate masses of this nation? Does he understand that these people have nowhere else to go nor anyone else to turn to but live in hope that this man called ‘Goodluck' will deliver them from the penury that is their lot after years of brutal disappointments from thieving politicians who have promised them the moon but have given them not so much as a bone with a little flesh on it.

Is Mr Jonathan as sincere as he portrays himself to be? I think so. Does he have the will or wisdom to lead this people out of ‘Egypt', through the wilderness to the Promised Land? Is he willing to make the sacrifice required to do this, especially surrounded by the brutal and cold-hearted hawks and political opportunists that largely constitute his ruling party? Does he even understand that his divine ascension to that position necessitates that he must deliver on his promises to a disenchanted and disenfranchised populace, or constitute a sacrificial lamb for the emancipation of his nation from the talons of the wicked who for so long have held us in bondage?

There is no doubting the sense that Mr Jonathan is the last hope for change in Nigeria. If things are not corrected now, we might end up with a failed state. A lot of things are pointed in that direction already. We need a total revamp of our economic system, our security system and our political system. The president needs a lot of help because he cannot do it all alone. However, he needs to know that he needs help and he needs to call on those who can help him without recourse to the corrupted powers, the demagogues and the dinosaurs that dominate the political horizon.

My own desperate desire is for this man to put aside the temptations and intoxication of the lure of lucre - he's already immensely blessed - and do what Dimeji Bankole could not do, seek a higher reason. The concentration of power in your hands, Mr president, is tantamount to that of a demi-god. Use it wisely.

bay77:
Bankole was the speaker, and it doesnt make sense that he should be punished for approving what the majority of the house desires. Infact he could not have declined, because that is the idea of the assembly. The problem is with us Nigerians, we elect wrong people into the house of assembly, people with little or no intelligence, people who only go there for the sake of their pocket, their children, grand children and great grand children. Of all of them Bankole seem (cant vouch for a Nigerian politician, but this was a general opinion when he took office) to be the only responsible personality that fits that chamber. Unfortunately, our systems says that he has to uphold what the remaining (I dont know what to call them again) says. And they always want more money, because that is the only reason they are there. We need to fix our system and not the person who by virtue of ill luck has to uphold the ills. Something must happen!

“There is no evidence that the money received as loan was the property of the Federal Government of Nigeria. It was at best the money of the House of Representatives. The persons entitled to it were the 360 members less the 1st and 2nd accused (referring to himself and his deputy Usman Nafada). All the persons who were entitled to the money got it. So where is the theft coming from?” he asked.

Written by Odidison Omankhanlen, Lagos Thursday, 23 June 2011

Central Bank of Nigeria (CBN) has allayed fears over the planned introduction of Islamic banking under the non-interest banking model in the country, noting that it is all about broadening the nation’s financial system.

Speaking at a workshop with the theme: Re- Purpose Capital: Non-interest banking in Nigeria, in Lagos on Wednesday, CBN Deputy Governor, Financial System Stability (FSS), Dr Kingsley Moghalu, said there was no need to entertain any fear about the banking model, stating that it was a way of attracting those outside the banking system for the development of the economy.

Moghalu explained that non-interest banking was not just about Islamic banking, urging individuals and groups wishing to practice non-interest banking based on established rules and principles other than Islamic to apply for a license to operate such institutions.

“Islamic banking is one of the models of non-interest banking, that serves the same purpose of providing financial services as conventional financial institutions except that it operates in accordance with the principles and rules of Islamic commercial jurisprudence that generally recognises profit and loss sharing and the prohibition of interest, as a model.”

youngmonie:
Nigerians sha!!,  and even this preist, Im sure they DONT EVEN KNOW THE MEANING OF ISLAMIC BANKING AND ITS BENEFITS!!, they will just start shuting because that word ISLAMIC is there!:

The underlying principle of Islamic banks is the principle of justice which is an essential requirement for all kinds of Islamic financing. In profit sharing of a financed project, the financier and the beneficiary share the actual or net profit/loss rather than throwing the risk burden only to the entrepreneur. The principle of fairness and justice requires that the actual output of such a project should be fairly distributed among the two parties. If a financier is expecting a claim on profits of a project, he should also carry a proportional share of the loss of that project.

In contrast with conventional finance methods, Islamic financing is not centered only on credit worthiness and ability to repay the loans and interest; instead the worthiness and profitability of a project are the most important criteria of Islamic financing while the ability to repay the loan is sub-segmented under profitability

They invest the money of their depositors on high profitable projects after going through a strategic analysis in order to give a substantial return to their depositors.

Thus in Islamic banking industry, each bank will attempt to out-perform other banks if it wants to attract funds from investors. And the ultimate result is that a high return on investments for the investors, which is unlikely in a conventional bank where it deals with their depositors on a pre-determined fixed interest rate.



So what in heaven is this preist talkig about, IGNORANCE IS HIS PROBLEM AND SO MANY PEOPLE ON nairaland!!

texazzpete:
You know, If it's actually confirmed that Soludo's roadmap definitely had Islamic banking on the plate, y'all will look like a bunch of re'tards.

This is the issue with Nigerians and intellectual laziness. I have not yet seen any detailed breakdown or analysis on what the proposed Islamic banking will entail. Yelling out the usual bigoted cries of 'aboki' and 'sharia' only marks you out as someone with limited intellect.

Either way, this whole issue doesn't bother me one bit. i'd prefer the Anglican bishops were more occupied in caring for the poor, sick and needy.

rman:
All those against this banking system should cover their faces in shame. Haknai took his time to explain the basic concepts of how it works but all you see is religion. We are in real trouble in this country if people that claim to have an education only see issues through the lens of religion , race or tribe.
What I expect from true  christians that are objective is to ask if this better economically and how other banks should be compelled to bank this way if actually it is better than the current system we are running.
They can give it any name they want afterwards if they are not confortable with the word ISLAM.

Pukkah:
Although I have my reservation on some of the methods of Sanusi but it is fair we admit here that Islamic Banking is not his brainchild. Soludo sure had a comprehensive blueprint which included Islamic Banking.

However, my bet is that Nigerians (especially non-Muslims) would find it hard to embrace Islamic Banking without suspicion or even rancour as reported by the person who started this thread. And this is one of the things that is wrong with Nigeria.

O ye religionists, when shall ye deploy religion as an instrument of unity and not division; and of cooperation instead of competition?  

hercules07:
9ja Voice

He is not the one ruining your economy, you need to ask Jonathan to have good fiscal policies and we will be on the right path, abeg let Sanusi bring Islamic banking jare as long as we can get facilities for our businesses.

CBN to increase N150,000 withdrawal limit .

Friday, 27 May 2011 00:00 Sanya Adejokun Hits: 10 .

•Senate directs Sanusi to remove Sharia clause

Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, yesterday declared that the N150,000 withdrawal limit set for bank customers may be increased.

However, the Senate Committee on Banking, Insurance and Other Financial Institutions, has directed the apex bank to withdraw the circular for issuance of Non-Interest Banking Licence because it contradicted Section 10 of the Constitution.

At an interactive session between the committee and senior officials of the bank at the National Assembly Complex, Abuja, Sanusi insisted that the directive on lodgement and withdrawal by June 1, 2012 was agreed on by the Bankers’ Committee which had already studied the situation in other countries.

“The law is not cast in stone. If by June, next year, we are not ready, then we will shift the date and if we also notice that N150,000 is not adequate or that the value has greatly reduced, we will increase it,” Sanusi told the Senators.

He explained that the CBN and the Bankers’ Committee had been working on the policy in the last six months to one year and by now, arrangements had been made with IT vendors to supply enough Automatic Teller Machines (ATMs) and Point of Sale (POS) terminals to serve the teeming polulation of traders across the country.

According to him, the CBN had envisaged complaints from affected Nigerians over the policy.

He added: “Basically, what we need is ambition and belief. The effective date of implementation is not cast in stone”.

He further explained that the apex bank had explored the financial systems of some West African and European countries, including Ghana, Kenya, Brazil and others, and found that if Nigeria must meet its target of Vision 2020-20, it should metamorphose into a cashless society.

According to Sanusi, only 10 per cent of Nigerians were capable of withdrawing upwards of N100,000 cash per day thereby, leaving the remaining 90 per cent to bear the cost of cash management which, he said, was high.

“The industry proposal is not to place limit on cash transactions, but provide that the 10 per cent of customers that make high volume cash transactions will bear the associated cost and eliminate the subsidy by the mass public (90 per cent) of banking customers,” Sanusi continued.

“The banking industry is committed to create an enabling environment to achieve a shift in behaviour to alternative payment channels; implementation is strategically phased and complementary reform is progressing on alternative payments channels through the retail payments transformation programme,” he added.

“In 2009 direct cost of cash management, the system spent N114.5 billion in cash management and the projection is that by 2020, we will get to N200 billion in cash management. Forty five per cent of total cash transaction that were down in Nigeria was in the region of zero to N10,000 and as you go down, you will find that 90 per cent of daily cash transaction were less than N100,000. Only 10 per cent by number of the transaction that are down in the banking sector are of N100,000 and above.

“The 10 per cent of N100,000 and above accounts for 75 per cent of the total value of cash so what is happening is that the 90 per cent poor Nigerians who do more than N100 000 a day are subsidising the 10 per cent rich ones. And what we said is that this is not fair. Those that do heavy cash transaction, they should pay for it, if you do more than N150,000, you pay a fine. We did not say you cannot do more than N150,000. If you do, you pay a fine so that you are not subsidised by the poor Nigerians.

Members of the Committee, led by Senator Nkechi Nwogu, who all expressed support for the initiative, however, canvassed for an extension of time to allow for proper education of the public and also for the deployment of adequate ATMs and POS terminals.

They also directed the nation’s apex bank to come up with a complete briefing on “non-interest financial banking” at a later date.

On non-interest banking, Wogu said the circular “is a violation of Section 10 of the Constitution of the Federal Republic of Nigeria. The guideline is similar to the banking laws of Malaysia, Iran, Iraq, Temen, Saudi Arabia and Libya. These are Islamic states which banking system and regulation are run strictly under Islamic law and jurisprudence”.

http://www.compassnewspaper.com/index.php?option=com_content&view=article&id=6902:anger-as-policemen-shoot-passengers-in-lagos-over-n100&catid=308:headlines&Itemid=600

Thursday, 26 May 2011 00:00 Nigerian Compass Hits: 18 .

LESS than 24 hours after a Divisional Police Officer (DPO) and a Divisional Crime Officer (DCO) were killed by some rampaging soldiers in Lagos, the blood of some innocent Nigerians were again shed yesterday, allegedly by some policemen detailed to guard the Isheri-end of the Lagos/Ibadan Expressway.

For the refusal of the driver of a commercial bus to part with N100, three mobile policemen opened fire on the bus, killing and injuring some of the passengers.

Some passersby cried when they saw one of the dead victims on the ground at OPIC Bus Stop with his brains out. He was drenched in his own blood.

A woman passenger was shot in the eyes while another passenger had his hand shattered by bullets.

They were rushed to an undisclosed hospital.

Angry residents took the body of the victim with shattered head to the front of a popular building in the area, looking for the policemen who, by then, had fled.

One of the passengers, Adeseye Oladimeji, told the Nigerian Compass that the white bus with registration number, XU 163 SMK, left Ojota for Ibafo with about eight passengers before the attack. Bullet holes were seen on the body of the bus.

Said Oladimeji: “I thank God that I am alive. Look at me, I am not hurt yet blood is all over my body. It is the blood of other passengers. We boarded the bus from Ojota, heading to Ibafo. When we got to OPIC junction, we were surprised to see a check-point. The mobile policemen were three in number.

“They asked the driver to give them N100 and the driver pleaded with them that he just came out and that he would see them later. One of them asked him to go, and at a very close range, they started shooting at us. Besides this man on the ground, I can tell you that almost four persons are at the verge of death while one woman was hit by a bullet in her eyes. For another who may survive, his hand was shattered by bullets, among others.”

When the Nigeria Compass called the Ogun State Police Command Public Relations Officer, Mr. Muyiwa Adejobi, he expressed shock and promised to investigate the incident.
Kenneth Mokwenye & Jonathan Eze

Physicist:
@ poster
I totally agree with you. I have a poor background in Nigeria. I am now living a comfortable life in the USA through hard work and luck. Majority of Nigerians whether poor or rich are very corrupt. The poor masses are as corrupt as the politicians.

ziccoit:
Well, I don't go by your assertion that NIFI doesn't have religion undertone. Nothing in human thinking would like to have a taste of that without a push fron the religion. NIFI is only picked out of the myriads of opportunities set down by religion in our bid to circumvent GOD.
Reading through your comment made me understood you have a definition for shariah which is at variant with what Islam gives. Shariah is the totality of ways and manners a Muslim should spend his life before he is born through life to right after death in accordance with the stipulated rules and regulations as define by Islam. You people only think the criminal acts of the law is shariah. NO.
Nothing in the rules guiding Islamic Banking System is non-implementable. If you quite understood the shariah as I tried to explained above no rule is extreme that could be hijacked by anybody.
Extrimism, extrimists etc don't have a place in Islam. You can either be a Muslim or Non-muslim. Westernised, mordern, moderate etc Muslims are coined to deceive people.
You may read the Islam Banking acts and bring forth a deadly clause you think could be dangerous so that we can discuss it together.
Concerning borrowing and making money, your interest as a lender and mine as a borrower is protected because you will be 100% involved on what the money used for and how the profit is shared. This system has been shown to generate more return to the banking system than the conventional one. Everybody's interest is also protected ad economy is not poisoned by unrecovered huge amount which is the reason why many banks and businesses collapse today in Nigeria.

Law prince:
I pray many Nigerians gets delivered from their beastly method of ignorantly debating issues.
The Islamic Banking is basically a Non-Interest banking system which has it's authority and source derived from the Islamic legislation.
I'm well aware of the fact that the actual mechanism behind the springing up of negative reactions as per the system is the tag 'Islam' it has.
And if I may ask, WHAT THE HELL IS WRONG WITH THAT?. You call things what they are. You simply don't find another name for a 'Drink' just because of it's bitterness.
That system of Islamic banking solely has it's stipulated theories in the scriptures of Islam.
Enough of the archaic western style of converting (stealing) the works of non-wests, and presenting it to the ignoramus world as their ideologies. They infact, name the works western.
Islam has therefore suffered so much from such smart crimes. And here comes some species from the dark wanting to modify the perfected and standardised theory of Islam.
I speculate that the cause of this kind of Islamophobia is because the critics doesn't have such a well defined economical concept, theory and principle in their various religions.
But I do advice that we stop being Nigerish (Jealous), for many foreign non-Muslim experts have regarded the Islamic system of banking as unmatched and the best in terms of economical advancement.
And there couldn't have been any world economic crush if the world had followed the divine laid down principle.
And besides, the Constitution guarantees freedom of religion, and specifically, Islamic personal laws.
It should also be brought to your knowledge that Muslims in Nigeria have for long suffered from the injustice of being subjected to a banking system that is not only regarded as a sin, but cursed. (Qur'an: al-Baqarah 2-279)
Nothing therefore compels a non-Muslim to adhere to the strict rulings of the system. Why then the wahala