ECONOMIC VIABILITY AND COMPLIANCE WITH NIGERIAN LAWS OF ISLAMIC BANKING IN NIGERIA AMIDST MISCONCEPTIONS
| dc.contributor.author | Aishat Abdul-Qadir Zubair, LL.B, BL, MCL. PhD, CSAA, PCIBF, PCIED | |
| dc.contributor.author | Abdulrazaak O. Zakariya, LL.B, LL.M, BL, PCIED | |
| dc.date.accessioned | 2025-07-03T12:04:32Z | |
| dc.date.available | 2025-07-03T12:04:32Z | |
| dc.date.issued | 2025-06-25 | |
| dc.description | NIL | |
| dc.description.abstract | ABSTRACT Islamic banking, a non-interest financial system rooted in Sharia principles, has gained significant traction in Nigeria over the past two decades. Emerging as a viable alternative to conventional banking, it aims to promote ethical finance, financial inclusion, and socio-economic development. However, its growth has been met with widespread misconceptions, ranging from its perceived exclusivity to Muslims to doubts about its economic viability, compliance with Nigerian laws, and operational transparency. These misconceptions have not only shaped public perception but also hindered the broader adoption of Islamic banking products and services. This article using qualitative legal analysis method examines misconceptions surrounding Islamic banking, evaluates legal frameworks, and assesses operational models through literature review and case studies. By analyzing legal frameworks, such as the Central Bank of Nigeria’s guidelines and the Banks and Other Financial Institutions Act (BOFIA), the study establishes the legitimacy and regulatory compliance of Islamic banking. Furthermore, it evaluates operational models, including profit-and-loss sharing (Mudarabah) and asset-backed financing (Murabaha), to demonstrate their economic viability and alignment with global best practices. The socio-economic impacts of Islamic banking are also assessed, highlighting its role in fostering financial inclusion, supporting small and medium enterprises (SMEs), and promoting ethical investment. The study reveals that Islamic banking is not only inclusive and accessible to all, regardless of religious affiliation, but also contributes significantly to Nigeria’s financial inclusion goals and economic development. To address persistent misconceptions, the article concludes with actionable recommendations, including public education campaigns, enhanced regulatory clarity, and proactive stakeholder engagement. | |
| dc.description.sponsorship | Self | |
| dc.identifier.issn | 3045-4548 | |
| dc.identifier.uri | https://kwasuspace.kwasu.edu.ng/handle/123456789/5605 | |
| dc.language.iso | en | |
| dc.publisher | DEPARTMENT OF JURISPRUDENCE AND PUBLIC LAW, FACULTY OF LAW, KWARA STATE UNIVERSITY, MALETE, NIGERIA | |
| dc.relation.ispartofseries | 2; 1 | |
| dc.title | ECONOMIC VIABILITY AND COMPLIANCE WITH NIGERIAN LAWS OF ISLAMIC BANKING IN NIGERIA AMIDST MISCONCEPTIONS | |
| dc.type | Article |