CBN Governor; No Going back on Islamic Banking

As the criticism in some quarters over the proposed Islamic Banking by the Central Bank of Nigeria rages, the Central Bank of Nigeria (CBN) governor, Malam Sanusi Lamido Sanusi, in Kano yesterday gave indication that there is no going back on the controversial issue.

Sanusi, who was special guest of Tijjaniya Youth Enlightenment Initiative, Kano said in a lecture he delivered on the occasion, that the management of CBN under him has not contravened any known constitutional provision in respect of banking, by deciding in favour of Islamic banking. He insisted that the controversy the issue has generated is unnecessary as it is a foregone conclusion.

The apex bank chief, however, challenged his critics to take legal steps in protesting CBN’s decision in favour of Islamic banking, which to him, simply means interest-free banking. Sanusi also used the forum to allay fears that the decision to institutionalize Islamic banking in the country is part of the efforts to further Islamise the country, pointing out that Islamic banking has been in practice in the country since 1996, and wondered why it has suddenly become an issue now that the CBN is looking in that direction.

He also highlighted the gains inherent in the establishment of Islamic banking. He listed some of the advantages to include direct investment from the Middle East, as well as the creation of employment for Nigerians, who are studying or studied Islamic banking, stating further that kicking against it is tantamount to denying this set of graduates the opportunity to secure employment and pursue a career.

Other benefits derivable from it, according to him, is the promotion of allied companies, such as Islamic Insurance, recalling that the concept of Islamic banking dated back to 1996 with the creation of Habib bank, which operations was purely Islamic. He reminded antagonists of the project that even in the tenure of his predecessor, Professor Charles Soludo, the issue of Islamic banking was conspicuously part of the agenda of the CBN.

“I am simply actualizing CBN’s dreams by implementing this aspect of this policy.” “I have done nothing to contravene any section of the country’s banking laws and given the fact that the nation is a democratic country, anybody who feels otherwise can go to court,” he further challenged.