Nigerian Government Issues an Islamic Banking License for the First Time

(Ahlul Bayt News Agency) - The Central Bank of Nigeria, CBN, has granted a preliminary licence to Stanbic IBTC Bank Plc to provide Islamic banking services to the Nigerian populace.  Central Bank Governror Lamido Sanusi (pictured), also disclosed that it was considering a request from Standard Chartered Bank to undertake Islamic banking.  The license issued to Stanbic IBTC is the first of its kind in Nigeria, and if Stanbic IBTC fails to provide Islamic banking products in six months, it will be revoked.  Islamic banking complies with the tenets of Shari`ah law, which holds that transactions involving interest are forbidden.  Speaking in an interview in South Africa, CBN Deputy Governor, Mr Kingsley Moghalu, noted that the licence would give the bank the opportunity to participate in the Sharia-compliant banking window, which forbids paying and receiving interest on loans, enabling the bank to offer Islamic banking products.  Islamic banking also requires that profits or losses are shared with the borrower, which discourages unnecessary speculation and spread risk.  He said: "We know a number of other banks are interested in applying for non-interest banking windows. We are preparing our officials to be able to regulate that space, and a lot of training is taking place in that context.  On the religious implication of Islamic banking, Moghalu said: "This is a financial product. It has got nothing to do with religion."  Sanusi had informed the financial community earlier in the year that government was committed to establishing Nigeria as the African hub for Islamic banking./129