The Central Bank of Nigeria's Governor Mallam Sanusi Lamido Sanusi is undoubtedly influential and so are his opinion particularly on fiscal and economic issues but even then in a democratic Society like ours his views must be thoroughly examined and vigorously examined before being adopted as policy statements. It is in this regard that Mallam Sanusi’s recent statement on the solution to the ungoing crisis in the nation's banking industry and the global economic melt-down has to be viewed.
Mallam Sanusi is quoted to have said that Islamic banking with its component of Non-interest banking will "create an enabling for attracting multi-billion dollars global Islamic finance industry to Nigeria and to enable Nigerians benefit from Sharia Complainant banking services and products". The same report said that a draft policy framework towards the establishment of the Islamic Financial industry in the Country was issued in March 2009 and is currently being reviewed for eventual release to the industry as a final document -- THE GUARDIAN. Monday August 31st 2009.
Though this statement was made at a Ramadan symposium organised by the Movement for Islamic Culture and Awareness (MICA) and not at a formal economic forum, coming from the helmsman of the nation's Apex Bank, they deserve no less serious attention and examination.
It is certainly tempting and even legitimate to explore alternative models of banking in the face of the current economic crisis both locally and internationally, that is of course if the present models have inherently failed or to attempt a revision and reform of the existing banking and financial practices, in that regard. The Non-interest component of the Islamic banking which finds equivalent in Zionist Judaism and old Testament Christianity appears very attractive. But it will be simplistic to assume that Islamic banking and products is all about not charging Usury thankfully Mallam Sanusi was candid to tell the whole world that the Islamic model of Banking being sought for Nigeria wit! include the full component of sharia compliant products which will inturn open up the nation's economy to multi-dollar finance from Islamic Financial Institutions.
There the concerns arise; the Sharia even for many of us uninitiated in its tenets comes with several components likely to arouse much tension and inevitable crisis in a multi radical, multi-religious nation like Nigeria; it comes with its own legal system how does that fit in with the present multi-religious legal system in Nigeria, its social Orders and Laws' How will the Church and other faiths fare, if they have to queue up to access Islamic finance to build Churches, how will the hospitality Industry like hotels, Casinos, Consumption and Value Added Tax on Alcohol, Liquor fare, what of Cinemas, Beauty Shows and non-Islamic promotions and adverts, Movies etc. Will all these have access to multi - dollar Islamic loans and financial products, even in the non-religious economic spheres like the Oil Industry, Manufacturing Banking, trading, communication and Telecommunication and ICT, will non-Muslim businessman and businesses have ready access to finances from Islamic banks and Islamic financial products and even then without stringent conditions and will the competition with businesses wholly owned by Muslims be even handed and fair?
Why these concerns cannot be readily swept aside with aware of the hand is because religion has been a sore-point in the nation's recent history. In the last three decades from the Maitatsine Riots in Kano in 1980 all the way to the latest Boko Haram crisis in Borno and other parts of Northern Nigeria, and in all of these; religion even if it is the false practice of it has been a major catalyst. And thus when Mallam Sanusi is quoted as saying that the Islamic banking being sought to be introduced is coming with Sharia Compliant products, Nigerians of non-Islamic faiths who have experienced first hand what the misuse of the Sharia entails are bound to be worried about the prospects of Islamic banking rooted in sharia compliant products.
Even the allusion to what the nation stand to gain by way of access to multi-dollar financing from Islamic banking institutions is not altogether convincing first because many of the institutions have a long history of directing their finances towards an expansionist policy of spreading Islam in Nigeria with the building of Mosques, Islamic institutions and Missions while the more belligerent institutions have been fingered globally in money laundering and the funding of international terrorism.
Thus for many discerning would be clients the offer of cheap interest - free money, may not be that attractive.
These are certainly critical times for the nation's economy particularly the banking sector and to that extent Mallam Sanusi deserves maximum support in his patriotic desire to instil sanity into the banking Industry. However that support base will become increasingly eroded when critics can legitimately attach less than altruistic reasons for his banking reforms. For instance in the face of his sack of the 5 MD's not a few commentators alleged Northernisation of the banking Industry. Those charges had hardly died down when Mallam Sanusi has now raised the idea of Islamic banking. The planned initiative is capable of being branded part of the Islamisation of the Nigerian economy and eventually nation moreso as many of those capable of offering alternative view points are in detention, standing trial or on the run.
Finally, Mallam Sanusi Lamido Sanusi is entitled to initiate whatsoever reforms he believes will best serve the nation's economy but he must be very careful in promoting efforts which at the end of the day are prone to being divisive and controversial rather than beneficial.
Yes, the idea of Interest free banking is worthy of being explored in Nigeria but certainly not its religious based complements in a multi - religious society like Nigeria. With all due respect Mr. Sanusi, No to Islamic banking or any religious banking, if there be any such, in Nigeria."
Mallam Sanusi is quoted to have said that Islamic banking with its component of Non-interest banking will "create an enabling for attracting multi-billion dollars global Islamic finance industry to Nigeria and to enable Nigerians benefit from Sharia Complainant banking services and products". The same report said that a draft policy framework towards the establishment of the Islamic Financial industry in the Country was issued in March 2009 and is currently being reviewed for eventual release to the industry as a final document -- THE GUARDIAN. Monday August 31st 2009.
Though this statement was made at a Ramadan symposium organised by the Movement for Islamic Culture and Awareness (MICA) and not at a formal economic forum, coming from the helmsman of the nation's Apex Bank, they deserve no less serious attention and examination.
It is certainly tempting and even legitimate to explore alternative models of banking in the face of the current economic crisis both locally and internationally, that is of course if the present models have inherently failed or to attempt a revision and reform of the existing banking and financial practices, in that regard. The Non-interest component of the Islamic banking which finds equivalent in Zionist Judaism and old Testament Christianity appears very attractive. But it will be simplistic to assume that Islamic banking and products is all about not charging Usury thankfully Mallam Sanusi was candid to tell the whole world that the Islamic model of Banking being sought for Nigeria wit! include the full component of sharia compliant products which will inturn open up the nation's economy to multi-dollar finance from Islamic Financial Institutions.
There the concerns arise; the Sharia even for many of us uninitiated in its tenets comes with several components likely to arouse much tension and inevitable crisis in a multi radical, multi-religious nation like Nigeria; it comes with its own legal system how does that fit in with the present multi-religious legal system in Nigeria, its social Orders and Laws' How will the Church and other faiths fare, if they have to queue up to access Islamic finance to build Churches, how will the hospitality Industry like hotels, Casinos, Consumption and Value Added Tax on Alcohol, Liquor fare, what of Cinemas, Beauty Shows and non-Islamic promotions and adverts, Movies etc. Will all these have access to multi - dollar Islamic loans and financial products, even in the non-religious economic spheres like the Oil Industry, Manufacturing Banking, trading, communication and Telecommunication and ICT, will non-Muslim businessman and businesses have ready access to finances from Islamic banks and Islamic financial products and even then without stringent conditions and will the competition with businesses wholly owned by Muslims be even handed and fair?
Why these concerns cannot be readily swept aside with aware of the hand is because religion has been a sore-point in the nation's recent history. In the last three decades from the Maitatsine Riots in Kano in 1980 all the way to the latest Boko Haram crisis in Borno and other parts of Northern Nigeria, and in all of these; religion even if it is the false practice of it has been a major catalyst. And thus when Mallam Sanusi is quoted as saying that the Islamic banking being sought to be introduced is coming with Sharia Compliant products, Nigerians of non-Islamic faiths who have experienced first hand what the misuse of the Sharia entails are bound to be worried about the prospects of Islamic banking rooted in sharia compliant products.
Even the allusion to what the nation stand to gain by way of access to multi-dollar financing from Islamic banking institutions is not altogether convincing first because many of the institutions have a long history of directing their finances towards an expansionist policy of spreading Islam in Nigeria with the building of Mosques, Islamic institutions and Missions while the more belligerent institutions have been fingered globally in money laundering and the funding of international terrorism.
Thus for many discerning would be clients the offer of cheap interest - free money, may not be that attractive.
These are certainly critical times for the nation's economy particularly the banking sector and to that extent Mallam Sanusi deserves maximum support in his patriotic desire to instil sanity into the banking Industry. However that support base will become increasingly eroded when critics can legitimately attach less than altruistic reasons for his banking reforms. For instance in the face of his sack of the 5 MD's not a few commentators alleged Northernisation of the banking Industry. Those charges had hardly died down when Mallam Sanusi has now raised the idea of Islamic banking. The planned initiative is capable of being branded part of the Islamisation of the Nigerian economy and eventually nation moreso as many of those capable of offering alternative view points are in detention, standing trial or on the run.
Finally, Mallam Sanusi Lamido Sanusi is entitled to initiate whatsoever reforms he believes will best serve the nation's economy but he must be very careful in promoting efforts which at the end of the day are prone to being divisive and controversial rather than beneficial.
Yes, the idea of Interest free banking is worthy of being explored in Nigeria but certainly not its religious based complements in a multi - religious society like Nigeria. With all due respect Mr. Sanusi, No to Islamic banking or any religious banking, if there be any such, in Nigeria."
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