Islamic banking proposed by the Central Bank of Nigeria - The way forward

    The bank is a place where individuals or business organizations alike put their money for personal or business transactions for the purpose of savings, current or fixed operations that produce profits in a given period of time. Nigeria as one of the world's growing economies has made the right decision to restructure the banking system in the country. Dating from 2005 in which all the existing banks were required to recapitalize to a minimum balance of twenty-five million naira or risk losing their operating licenses in the direction of Prof. Charles Soludo Chukwuemeka, the then Governor of the apex of Nigeria Bank, Central Bank of Nigeria.

    Strangely, this paved way for an organized and prosperous banking sector, where some of the banks met the benchmark expected, while others merged and some fell by the wayside. However, this amendment creates a free flow of capital funds for banks to play with - proclaiming the universal banking. You do not forget the role played by banks in the capital market during the boom in lending loans or investors a margin loan from these banks ranging from 7% to 20% interest rates in order to obtain abundant profits invested in stocks appreciated. Unfortunately, the proliferation of all kinds of offers in our capital markets over time accounted for the slowdown in the economy. We should also mention that Africa was not alone in this economic impasse like most countries of the world suffered the same fate as the United States of America.

    In his attempt to restore the old days, economic experts and world-renowned scholars to offer solutions to revive the economy. Nigeria is not left out in the struggle. With the emergence of Mallam Sanusi Lamido Sanusi as the next governor of the Central Bank of Nigeria Prof. Charles C. Success Soludo, who took action to continue in good works of his predecessor. Between 2009 and 2010, about five bankers were charged and prosecuted for misuse of depositor funds ranging from personal funds misappropriation, unauthorized unsecured loans and unnecessary costs. While others are currently under study. Having seen the good works of the new Central Bank of Nigeria Governor, the President of the newly created Asset Management Corporation of Nigeria. The objectives of the Asset Management Corporation of Nigeria is the purchase of "toxic" assets of banks in trouble and could have a majority share of insolvent banks, after plugging the equity gap. The public commentators praised the government for this initiative that gradually restored the confidence of the investors to invest in both capital and money markets. Not surprisingly, in the April 26, 2011 Time magazine's prestigious honor Sanusi Lamido Sanusi as one of the 100 most influential people in an awards ceremony held at Grand Gala United States of America. However, as far as possible the reforms appear to check the excesses of banking operations, adverse effects are quite alarming as the capital markets and money are currently witnessing the low investor confidence after another purchase of three banks (Afribank, BankPHB and Spring Bank) for three relatively unknown companies (the main street, Keystone and Enterprise), respectively, on August 5, 2011 by the Sanusi led the Central Bank of Nigeria.

    However, in early 2011, Mallam Sanusi Lamido Sanusi reopened the application of non-interest banking, popularly known as Islamic banking, which was initially introduced by his predecessor as one of the tools to revive the economy verifiable negative asymmetry . According to Wikipedia, the free encyclopedia Worlds, "interest-free banking seems to be of very recent origin, which a coworker receives a greater benefit compared with a dream (not working) partner" What this simply means is both banks and investors (working partner) get a higher share of profits after a commercial transaction safe. One might ask, does this build the nation's economic growth as practiced in the United Kingdom, Malaysia, etc? Ultimately, it will build the future of our economy, but how to do it is what it is technically incorrect. Please read on-line business day of June 29, 2011 for a more detailed explanation. The CBN governor has the right to talk about the benefits of any product or system that the apex bank is deploying, but giving more than the religious feelings of professional economic gains cum, to convince the country with a hard edge.

    This style of banking proposals has generated heated discussions and debates over sections of the country. Remember that Nigeria is a secular state with almost the same number of Christians and Muslims in the population not to mention other religious and traditional groups. For example, the direction of the Christian Association of Nigeria (CAN) has strongly opposed the introduction of Islamic Banking citing some wrong approaches by the Sanusi led the Central Bank of Nigeria as the use of state funds to promote implementation of the scheme not to resort to other religious groups in the country. The country is still facing serious security threats arising from the kidnapping, militancy and more worryingly, the terrorist attacks by the dreaded sect, Boko Haram, especially in the Federal Capital (Abuja) and other northern parts of the country. It is surprising to learn that the President has remained silent on the issue that needs urgent action to put the right information to the masses want a better government in terms of economic gains and political issues.

    Whatever the outcome of the Islamic banking proposed by the Central Bank of Nigeria would be the main organ which takes into account the following as the way forward:

    1. Implementation processes of the non (Islamic) banking should be done in strict accordance with the procedures established by the regulatory authority - Central Bank of Nigeria.
    2. They should also have greater benefits for investors in Islamic banking, without directly or indirectly affect other investors in the banking interest in the same sector.
    3. That the Central Bank of Nigeria should continue to please, to create greater public awareness of the non (Islamic) banking have a roundtable discussion with all stakeholders, including: The religious sects, economic experts, legislators, government officials and the media to put out any errors the proposed system.

    The fact that non-participation (Islamic) banking with its' numerous benefits that are practiced in some countries, the Central Bank of Nigeria, under its current leadership has to convince the most enlightened of 55% of Nigerians benefits without affecting the other interest for economic growth and peace.

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Islamic banking proposed by the Central Bank of Nigeria - The way forward

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