The Role of Shari ’ ah-Compliant Banking in Nigeria’s Economic Growth and Development
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Date
2025
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Kunduz University International Journal of Islamic Studies and Social Sciences
Abstract
This research delves into the impact of Islamic banking, guided by
Shari
ah principles, on Nigeria's economic advancement. Recognizing
its emergence as a pivotal alternative to conventional finance, this
study investigates its theoretical foundations, practical
implementation, and tangible contributions to Nigeria's economic
growth. It meticulously analyses the core principles, such as the
avoidance of interest and speculative practices, and contrasts them
with traditional banking methods. The evolution of Islamic banking
within Nigeria is traced, highlighting its role in expanding financial
access, supporting small businesses, funding infrastructure through
Islamic bonds, and fostering macroeconomic stability. Despite its
potential, the sector grapples with regulatory hurdles, limited public
understanding, and liquidity challenges. This analysis also identifies
growth prospects, including rising demand for ethical financial
solutions, government backing, and the integration of financial
technology. Recommendations are offered to strengthen Islamic
banking, focusing on policy improvements, public education, the
development of diverse financial instruments, and investment in
skilled personnel. By examining these factors, this research aims to
illuminate the future trajectory of Islamic banking in Nigeria,
underscoring its potential to drive sustainable economic progress.
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Citation
Dasuki, M J. (2025). The Role of Shari ah-Compliant Banking in Nigeria’s Economic Growth and Development. Kdz Uni Int J Islam Stud and Soc Sci;2(2):254262