THE PROSPECTS AND CHALLENGES OF OPERATING AN ISLAMIC BANKING SYSTEM IN NIGERIA: A CASE STUDY OF JAIZ BANK PLC

Alabi, Moshood Kolawole ()
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Alabi, Moshood Kolawole: Department of Economics, Postal: University of Ilorin.,, https://fssunilorinedu.org/ijbss/index.php

Ilorin Journal of Business and Social Sciences, 2017, vol. 19, issue 1, 215-233

Abstract: This paper examines the prospects and challenges of operating an Islamic (Non-Interest) Banking System in Nigeria with an in depth focus on Jaiz Bank Plc, the first and only Islamic bank in Nigeria. A look at the performance of Islamic banks across the globe revealed that it has the potential of guaranteeing financial inclusion for more Nigerians, providing alternative financial products and services which are ethical, ensuring stability in the Financial Sector and attracting huge Foreign Direct Investments. Indeed, the Jaiz Bank experience has been able to achieve that. Even though Jaiz bank and indeed other Islamic banks are going to be faced with stiff competition and several challenges like dearth of manpower, inadequate Shari'ah-compliant liquidity management instruments and a lack of knowledge of Islamic Finance, Accounting and Auditing standards, these challenges are however surmountable. The CBN and Islamic bank promoters must embark upon massive public awareness encourage Human Capital Development in Islamic finance and chart ways of fully integrating and accommodating the Islamic banks and their products into the Nigerian financial market.

Keywords: Islamic Bank; Non-interest Financial Institutions; Return on Assets; Sukuk. (search for similar items in EconPapers)
Date: 2017
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