Legal framework on Islamic finance in Nigeria: a critical appraisal of Hurdles against the effective shari‘ah governance

Chiroma, Magaji and Arifin, Mahamad and Abdullah, Mohamad Asmadi and Ansari, Abdul Haseeb (2014) Legal framework on Islamic finance in Nigeria: a critical appraisal of Hurdles against the effective shari‘ah governance. In: 5th International Conference on Islamic Jurisprudence in the 21st Centurty (ICIJ2014), 23-25 Sept. 2014, Cultural Activity Centre, International Islamic University Malaysia.

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Abstract

Nowadays, criticisms by the antagonists of Islamic financial institutions regarding their establishment and management have been put to rest. Most countries in the world if not all, have reckoned with the successes recorded in terms of capital markets and growths of Islamic financial institutions. However, the most challenging issue in recent times is not regarding the management of the capital base of the institutions, but on how to get a feasible legal framework in modern Muslim countries that can ensure the effective Shari‘ah compliance within the sector. It is obvious that each country that operates Islamic finance in the world has its own peculiar approach to the mode of Shari‘ah governance within its Islamic financial institutions. In some countries where Islamic finance is being practiced, a distinct and full-fledged legal framework has been provided, while some countries do not have it due to the pluralistic nature of their legal systems. Other countries despite the complexity and pluralism of their legal system have still managed to have a distinct and full-fledged legal framework on Islamic finance. Nigeria is one of the modern Muslim countries that have in recent years embarked on Islamic financial activities within its financial sector. Since its involvement, a lot of challenges have been encountered; legally, politically, socially and economically. The most glaring one in recent past is regarding the issue of having an effective, independent and distinct legal framework for the Shari‘ah governance in Islamic financial institutions. The Central Bank Act, Central Bank Guidelines and the Bank and Other Financial Institution Act (BOFIA) are currently the key and major legal frameworks regulating Islamic banking (including the Shari‘ah governance) and other financial institutions in Nigeria. It is against this backdrop that this paper suggests (as per the recommendations set out herein) among other things, that the Government of Nigeria should create a better and suitable enabling environment for Islamic financial institutions to operate.

Item Type:	Conference or Workshop Item (Full Paper)
Additional Information:	6585/38698
Uncontrolled Keywords:	Legal framework, Islamic finance, Shari‘ah governance, Nigeria
Subjects:	H Social Sciences > HG Finance > HG1501 Banking K Law > KBP Islamic Law
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws > Department of Islamic Law
Depositing User:	Professor Abdul Haseeb Ansari
Date Deposited:	14 Oct 2014 09:40
Last Modified:	14 Oct 2014 09:40
URI:	http://irep.iium.edu.my/id/eprint/38698

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