The Prospect and Challenges of Islamic Banking and Finance in Nigeria: A Conceptual Approach

摘要

Islamic banking and finance in Nigeria has been bedevilled with a lot of issues and challenges ranging from religious problems, policy and guideline inconsistencies, investors and promoters of the system. Though Islamic banking in world has been in existence for centuries, it still remain a new phenomenon in Nigeria and finding difficult to penetrate into the banking and financial industry in spite of the large population of Muslims in the country. This study aimed to identify and analyse the prospects and challenges of Islamic banking finance in Nigeria using secondary sources and other past literatures. By adopting conceptual method, the study suggest that both government and promoters of Islamic banking should add more effort through effective collaboration that will bring about a more detailed guideline for full operationalization of Islamic banking and finance in Nigeria. The guidelines should not ambiguous and it should state clearly the rules and policies for conduct of the business in Line with Sharia principles. This study concludes that Islamic banking and finance in Nigeria offers a huge investment opportunity for both domestic and foreign investors what is most needed to achieve this, is for all stakeholders to collaborate in a way that a structured, functional and sustainable Islamic banking model will be formulated and communicated widely so as to gain general acceptability. The study further concludes that effective and harmonious relationship and understanding between different religious sects in the country will also go a long way in enhancing the growth and development of Islamic banking and finance in Nigeria.