The Legality and Viability of Non Interest (Islamic) Banking in Nigeria: Problems and Prospects

Abstract  This Seminar presentation provokes a re-visit of the decision, by the Central Bank of Nigeria (CBN), to establish Non Interest (Islamic) Banking system in Nigeria, against the backdrop of  the  country’s  status  as  a secular State. The renaissance of the proposal to introduce the Islamic banking system in Nigeria in recent time by the Central Bank of Nigeria (CBN) has generated so much controversy across the country. The policy legally permits operation of an Islamic  or  Interest-free  banking  system  in  the  country  alongside  with  conventional counterpart  to  strengthen  the  financial  intermediation  process  through  Islamic  banking services. The work presentation takes a critical look at the premises on which the objection is based. It also examined the legal basis for the introduction of the system and the viability in operation and patronage of the products. Thus, the outcome of the study was analyzed using chi square statistical tool and appropriate conclusion and recommendations were presented on the findings.