Islamic Banking in Nigeria: Challenges and Prospects

Ismail Kayode Olaoye, Muhammad Al Furqan Dabiri and Razaq Kareem

International Journal of Management Sciences, 2013, vol. 1, issue 1, 24-29

Abstract: The recent development of insolvency of many conventional banks in Nigeria made the Central Bank of Nigeria (CENTRAL BANK OF NIGERIA) to initiate the acquisition of some banks while others were ordered to merge. This was a strong signal to seek for alternative banking system. However, the advocacy for the Islamic banking system as alternative to conventional banking system has been received with mixed feelings. This might not be unconnected to the secular nature of Nigeria. This paper therefore examines the origin of Islamic banking, Islamic financial system in perspective, operations of Islamic financial system as well as the challenges and prospects for the Nigerian economy. The paper posits that awareness, manpower, legal framework, societal belief, cash requirements as some of the challenges while economic growth, attraction of investors, and fostering of egalitarian society are the likely prospects for the establishment of the Islamic banking in Nigeria. The paper concludes that Islamic banking system will bring transformation to all sectors of the economy vis-a viz eradication of poverty, equitable distribution of income and employment opportunities in the country through effective mobilization and allocation of capital.

Keywords: Islamic Banking System; Islamic Financial System; Mudarabah; Musharakah Iijarah; Murabahah (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://rassweb.org/admin/pages/ResearchPapers/Paper-4-ms_1497124162.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rss:jnljms:v1i1p4

Access Statistics for this article

More articles in International Journal of Management Sciences from Research Academy of Social Sciences
Bibliographic data for series maintained by Danish Khalil ().