The Central Bank of Nigeria [CBN], has given Stanbic IBTC bank [a unit of Standard Bank Group Ltd] a license to operate Islamic banking services in Nigeria.
This revelation was given by the Deputy Governor of the apex bank Kingsley Moghalu on Sunday.A preliminary license was awarded to Stanbic last week for a Shariah-compliant banking window, the first one given to a commercial bank in Nigeria, Moghalu said in an interview in South Africas capital, Pretoria, on July 1. Islam bans paying and receiving interest.
Central bank Governor Lamido Sanusi said on June 20 Nigeria wants to be a hub of Islamic finance" in the region and plans to sell its first Islamic bond, known as sukuk, within 18 months.
We know a number of other banks are interested in applying for non-interest banking windows," Moghalu said. We are preparing our officials to be able to regulate that space, and a lot of training is taking place in that context."
The CBN has already given approval to Jaiz International Bank Plc, a local lender with international investors, to open the countrys first Shariah-compliant bank, Moghalu said.
Stanbic has a license to begin operating Islamic banking branches within six months and if it fails to do so within that time, the lender will need to reapply for approval, he said.
According to Moghalu, Islamic banking has significant potential but its subject to the risks that go with every other type of banking activity."
The introduction of non-interest banking in Nigeria, thereby known as Islamic banking, has been trailed by wide range anger and disagreement by religious groups in the country.
The CBN has already given approval to Jaiz International Bank Plc, a local lender with international investors, to open the countrys first Shariah-compliant bank, Moghalu said.
Stanbic has a license to begin operating Islamic banking branches within six months and if it fails to do so within that time, the lender will need to reapply for approval, he said.
According to Moghalu, Islamic banking has significant potential but its subject to the risks that go with every other type of banking activity."
The introduction of non-interest banking in Nigeria, thereby known as Islamic banking, has been trailed by wide range anger and disagreement by religious groups in the country.
The President of the Christian Association of Nigeria had said last week that the CBN has introduced religion into the Nigerian banking sector and condemns the introduction of Islamic banking in Nigeria.
In a swift reaction to the rejection of non-interest banking in the country by religious groups, Islamic leaders said Islamic banking has become a global phenomenon.
"It has been adopted in more than 75 Countries across the World. Some of these are Christian States or with predominantly Christian population such as United States, United Kingdom, Germany and France. In Asia, many Countries, including Indonesia, India, Pakistan, Bangladesh and Malaysia are operating the Islamic Banking System. In Africa, such countries like South Africa, Egypt, Senegal, The Gambia, Niger, Kenya, Tanzania, Algeria, Libya, Tunisia and Benin Republic have also embraced Islamic Banking". The Nigerian Supreme Council for Islamic Affairs (NSCIA) said in its statement.
In a swift reaction to the rejection of non-interest banking in the country by religious groups, Islamic leaders said Islamic banking has become a global phenomenon.
"It has been adopted in more than 75 Countries across the World. Some of these are Christian States or with predominantly Christian population such as United States, United Kingdom, Germany and France. In Asia, many Countries, including Indonesia, India, Pakistan, Bangladesh and Malaysia are operating the Islamic Banking System. In Africa, such countries like South Africa, Egypt, Senegal, The Gambia, Niger, Kenya, Tanzania, Algeria, Libya, Tunisia and Benin Republic have also embraced Islamic Banking". The Nigerian Supreme Council for Islamic Affairs (NSCIA) said in its statement.
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