The CBN Governor,

Malam Sanusi Lamido Sanusi,  says the apex bank is not in any way promoting or establishing an Islamic bank in Nigeria, contrary to speculations in some quarters.

Sanusi made the clarification on Monday in Abuja, at a two-day International Conference on Non-Interest Islamic Banking.

“The Central Bank is not promoting or establishing Islamic bank, the Central bank is simply licensing and regulating an institution that is allowed to exist under the law.

“To the extent that this bank is not allowed to deny anyone the opportunity to be a stakeholder and to the extent that they do not deny anyone to set up his own bank.

“There is absolutely no discrimination. We have to continue making that point, hopefully, people will get to understand with time,’’ he said.

He maintained that those who felt that what the apex bank was doing was illegal, should go to the court of law.

According to him, the bank will stop the establishment of non-interest Islamic banking if the court says it is illegal.

“But we don’t think the court will say so because we know we are acting within the realm of the law but it is only the court of law that can make a pronouncement on the legality of anything.

“So if anybody says it is illegal, then he should go to the court of law and let the law pronounce the legality or illegality of it,’’ he said.

Sanusi said that the non-interest banking had been practiced in about 435 institutions and in about 75 countries in the world.

He said that with the guidelines in place, Nigeria was set to join the league of other countries to benefit from the non-interest banking.

To ensure effective operations, he said, Nigeria had joined the Islamic Financial Service Board and ensured collaboration between Securities and Exchange Commission and Nigeria Deposit Insurance Corporation.

He added that the apex bank had also signed a Memorandum of Understanding with Bank of Malaysia on issues of “regulator cooperation and collaboration.”

He said that ethno-religious diversity of Nigeria called for mass awareness, as misconception of the concept might jeopardise the process.

“For us in the CBN, we will like this conversation at the conference not to be a conversation between Muslim and Christians because Islamic banking is a universal product.

“We will like it to be conversation on finance, economics; it is about deepening the financial system and enhancing financial system stability and financial access,’’ he said.

Mr Kinsley Moghalu, CBN Deputy Governor, Financial System Stability, said that there was no need to express fear about the introduction of the non-interest Islamic banking in the country.

He said that the operation was based on pure business preposition and universal accessibility for all purpose irrespective of religion, culture, race or gender.

“As a value proposition, it is faith, gender and religious blind. Non- interest Islamic banking is offered in western and financial centres such as London, Japan and Singapore,’’ he said.

He said that global institutions such as Citi Bank and Standard Chartered Bank were among the foremost providers of the non-interest banking in the world.

Moghalu said that the establishment of the non-interest banking was in line with the financial system strategy of the Federal Government aimed at strengthening the sector.

He added that establishing the non–interest banking was an opportunity for artisans who could not fit into the conventional banking to benefit and contribute to the growth of the sector.

Moghalu gave an assurance that the apex bank would comply strictly to guidelines and proffer a level playing ground for smooth operation of the bank.

Also speaking, Mr Danladi Kifasi, the Permanent Secretary, Federal Ministry of Finance, said that non-interest banking was all about profit and loss and ability to develop trust.

He said that it was not a religious product and would be another potential avenue for employment creation in the country.