DMO Counsels On Islamic Banking

The Debt Management Office (DMO) has called for sustained campaign that will highlight the positive aspects of  Islamic banking before a decision is taken on the initiative.

DMO Director General, Mr. Abraham Nwankwo, made the call recently in Abuja at the inaugural meeting of the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and DMO on alternative modes of financing infrastructure in the country.

Also present at the meeting were representatives of the Infrastructure Concession Regulatory Commission (ICRC) as well as other stakeholders.

“I will want to us to consider the possibility of summarising the approach to this special project along three lines, first the stage of knowledge and understanding, information, education, publicity.

“There is need for that at this initial stage; I believe that there must be a way of encouraging every Nigerian to know about this special product or funding. Knowledge and understanding should be first.

“The second stage should be a stage of taking decision and making a choice, knowing about the issues, product.

“Having known about all of them, we might come to the conclusion we want to consume all aspects of non interest banking or part of them,’’ he said.

Nwankwo, however, said decisions should be taken considering the environmental factors in the country, adding that government’s action must focus on the technical realities of the economy.

The realities, he said, involved political considerations and experience concerning the various reforms in banking and financing over the past 20 years.

“The realities of experience include the banking sector, community banking, micro finance banking and indeed the realities of what is currently happening in the banking sector, repositioning, restructuring of the banking sector.

“All these and the realities of what has happened in the capital market in recent days in Nigeria and the implications on the volatilities in the banking sector are also to be noted.

“These are the entire contest that will help us having known what non- interest banking is and to take a decision of the way forward,’’ he said.

Nwankwo said all these considerations must be analysed before moving to the implementation stage, adding that following these processes would enhance effective implementation of the initiative.

“We should be open minded about moving forward and the easiest way is for all us to commit to ourselves that there is nothing wrong in having full knowledge of  this type of funding,’’ he  said.