Islamic financing/banking in the Nigerian economy: Is it workable? A review of related issues and prospects

Abstract

Purpose

The purpose of this paper is to examine the concept of Islamic banking in Nigeria, against the backdrop of the country's peculiar socio‐cultural background and economy.

Design/methodology/approach

The paper reviews related issues and prospects in the context of Islamic banking in the Nigerian economy.

Findings

Implementation and success of Islamic banking in Nigeria would require: re‐shaping the society, restructuring of the economic system and re‐framing of the laws according to the dictates of Islam. This will not be easy in Nigeria, given her multi‐religious nature. The most difficult and important task, however, is the reformation of society, which has to be undertaken as an on‐going process. The paper recommends a dual banking system, where the conventional system will run side by side with the Islamic banking system.

Originality/value

The paper offers some useful suggestions that may lead to effective interest‐free banking operations in Nigeria.

Citation

Clifford Obiyo, O. (2008), "Islamic financing/banking in the Nigerian economy: Is it workable? A review of related issues and prospects", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 1 No. 3, pp. 227-234. https://doi.org/10.1108/17538390810901159