The Emerging Islamic finance market in Nigeria – Outline and challenges
The current size of the Islamic Banking Industry at the global level is $1 trillion, and could grow to $5 trillion over time.
Nigeria is inclined to this global trend. In March 2011 the country has signed an agreement with Malaysia's Central Bank to cooperate in Islamic Financial Service1.
Principles of Islamic Finance
The most important principles of Islamic Finance involve the forbiddance of:
- interest earnings, money lending or usury (riba)
- sinful activity (haram), such as direct or indirect association with lines of business involving alcohol, pork products, firearms, tobacco, and pornography
- speculation, betting, and gambling (maisir), including the speculative trade or exchange of money for debt without an underlying asset transfer
- trading of the same object between buyer and seller