An Assessment of the Definition of Non-interest (Islamic) Financial Institution in Nigeria

The existence of the definition of Non-interest Financial Institution banking (NIFI) calls forthe need to examine the practical definition of NIFI (Islamic banking system) in Nigeria. Thisbecomes absolutely necessary to avert any possible misconstruction of the intent of the CBNguidelines. The article adopted the use of doctrinal methodology wherein both primary andsecondary data were utilized. The primary data utilized was from hadith, while the secondarydata was sourced from CBN guidelines and case laws. It is the contention of this article whetherthe definition of the CBN guideline of 2009 on NIFI and the same latter repeated in the 2016regulation on Non-Interest (Microfinance) Bank can actually stand the test of reality. It is thefindings of this article that, there is the need to readjust the definition of NIFI which aim atcompliance with the principles of Shariah in a way that the definition will reflect the applicableschool of thought in matters relating to Islamic Commercial Jurisprudence. It is thereforerecommended that, CBN should amend the guideline and same to be reissued in a way that aspecific school of thought will be specified and also adopts the use of ‘any other similartransaction’ where prohibitory dealings were mentioned.  

The existence of the definition of Non-interest Financial Institution banking (NIFI) calls for
the need to examine the practical definition of NIFI (Islamic banking system) in Nigeria. This
becomes absolutely necessary to avert any possible misconstruction of the intent of the CBN
guidelines. The article adopted the use of doctrinal methodology wherein both primary and
secondary data were utilized. The primary data utilized was from hadith, while the secondary
data was sourced from CBN guidelines and case laws. It is the contention of this article whether
the definition of the CBN guideline of 2009 on NIFI and the same latter repeated in the 2016
regulation on Non-Interest (Microfinance) Bank can actually stand the test of reality. It is the
findings of this article that, there is the need to readjust the definition of NIFI which aim at
compliance with the principles of Shariah in a way that the definition will reflect the applicable
school of thought in matters relating to Islamic Commercial Jurisprudence. It is therefore
recommended that, CBN should amend the guideline and same to be reissued in a way that a
specific school of thought will be specified and also adopts the use of ‘any other similar
transaction’ where prohibitory dealings were mentioned.

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Child Right to Education of Internally Displaced Children in North-East Nigeria: The Role Of Government and International Bodies

Author(s): Dr. Alhaji Umar Alkali, Muhammad Bashir Alkali, Dr. Muhammad Musa

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Author(s): Ali Abdulkadir Waziri P.h.D, Halima Doma Ph.D

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