Islamic Banking: To Be Or Not?

No doubt, Nigeria as a sovereign state which is made up of various ethnic nationalities has over the years preceeding independence taught to be one indivisible nation.

During the civil war, the slogan introduced and adopted by General Yakubu Gowon was, “to keep Nigeria one is a task that must be done,” and at the end of hostilities, he restyled it to; “to keep Nigeria one is a task that was done.”

Of course from every other leader down the line after General Gowon, the task has always been on how not to let Nigeria break and the focal point has always been along religious lines.

Although, we have other religions in Nigeria, the most outstanding ones remain that of the Christians and Muslims.

There is no controversy that all along, one was always trying to dominate the other in matters of national interest.

Today, there is a school of thought that says they cannot explain what has been holding the country together till this day because in every aspect of our national life ranging from elective and rulership positions, religion naturally takes centre stage.

It is no wonder therefore, that the recent move by our Muslim brothers to establish what has come to be known today as an Islamic Bank in the country has been visited with strong misgivings by a cross section of Christians in the country.

A clergy man who gave his name as Pastor Rufus Chigozie of the Assemblies of God church Port Harcourt who spoke on the issue said that although, he was not expressing the opinion of his church explained that he has no information as to the modus operandi of the bank but he still expressed concern that the idea was coming on the heels of the actions of the “Boko Haram” sect terrorists activities in some parts of the country.

A member of the Brotherhood of the Cross and Star, Port Harcourt, Evangelist Biobele Benson, however, in his reaction saw nothing wrong in the Muslims coming up with such an idea.

According to him, if for any reason kicking against the establishment of the Islamic bank have any information that was critical to the security of the country they should do so.

He said on the other hand they as good Christians should surrender everything to God, after all, according to him, it is nominated in the scriptures that in whatever situation they found themselves they should give thanks to God.

Evangelist Biobele further explained that he was not in support of the alleged involvement of some Anglican Bishops in the controversies surrounding the Islamic bank affair and described their actions as carnal and urged them to occupy themselves with spiritual matters instead.

On his part, the Director General of the National Teachers Institute, (NTI) Dr. Aminu Ladan Sharehu advocated for an intensive public enlightenment to clarify query areas in the planned Islamic banking system in the country.

According to reports, the DG who spoke to newsmen in Zaria recently, called on the need for seminars and workshops for stakeholders in the banking industry using the media adequately.

He said it would afford both Moslems and Christians the opportunity to have a clear understanding of the working of the new system.

According to him, lack of trust among Nigerians on any issues has always become a source of suspicion especially where it relates to religion.

He observed that since the country has been operating the conventional system of banking for a long time without a good showing for it interms of economic development, it has become imperative to diversity.

“Since we have tried the Western economic policy and it didn’t work, why can’t we try another means and see whether we can address our economic problems,” adding that the Islamic banking system could be used to tackle the nation’s economic problems even though it would be wrong to say that the system was cast in stone.

Also speaking in support of the new banking system, the Chief Imam of Diobu Central Mosque in Port Harcourt, Rivers State, Alhaji Abdulsalam Suleiman said that the system was a non-profitable making organization.

He said the Islamic banking forbids collateral before issuing loans to customers and that what was obatainable in the Islamic banking system was sincerity and faithfulness.

The Islamic cleric further explained that the bank only makes its profit from its selling and buying business.

“If you buy from say, Saudi Arabia with N15.00, definitely you will sell for N20.00. The difference is your profit,” he said.

The Imam emphasized that the central idea was to safeguard the finance of both Muslims and non-Muslims in order to keep business going  in addition to keeping and maintaining the laws governing the organization to make for equal opportunity in the system.

He said hence the bank does not add interest for deposits into the bank by depositors but gives back exactly what was deposited, it becomes “haram” (evil) to take interest from a borrower.

Again this July, a religious group which goes by the name The Moslem Congress (TMC) urged the Central Bank of Nigeria, (CBN), to ignore calls from certain quarters it alleged were lobbying against the introduction of the Islamic banking system in Nigeria.

President of the group Ustadh Lugman Abdur Raheem was quoted to have spoken in Ibadan early this month with a call to the federal government to ignore the lobbyists and allow the CBN face its statutory responsibilities.

“We also appeal to the National Assembly members as the representatives of the people not to allow the voice of some few to becloud their reasoning.

According to him, what the Moslems were asking for was not a favour but an Allah given right, which is also constitutionally guaranteed and in tandem with the United Nations Human Rights Principles of which Nigeria was a strong advocate.

“The fact is that all the three religions of Christianity, Islam and Judaism have undiluted, unambiguous and uncompromising theological foundations that prohibit interest and “usurious” dealing.”

He observed that the present situation where there was no single Islamic bank in the country constitutes a breach of their fundamental human rights as Nigerians, and that it stands in contradiction to the spirit of section 38 of the 1999 constitution of the Federal Republic of Nigeria which guarantees freedom of religion and liberty to manifest one’s conscience within the ambits of the laws.

He further pointed out that saving in lawful banks was part of Islamic beliefs and acts of worship.

He said it was based on these points that TMC enjoins Nigerian Christians to be tolerant and objective in their reaction to Islamic norms and ideals.

AbdurRaheem who was reported to have quoted several portions of the Holy Bible and Quran in which acts of giving and collection of interest were prohibited affirmed that the Muslims in Nigeria needed an Islamic bank in order to purify their wealth, investment outlets as well as safe guard their hereafter.

“The fact that others do not need non-interest banking does not mean  that they should stand in the way of the Muslims,” he said, wondering why people tended to read religion into everything but still claim that it was not religion when they wish to do mischief.

From the ongoing, this writer is of the opinion, (though from a layman’s view) that for any bank to be set-up, there are laid down rules and regulations guiding such ventures, therefore, for the Islamic bank to be or not would not be settled on the pages of newspapers or any other media for that matter but within the ambits of the laws of the land.

As an addendum at the International Conference on non-interest (Islamic) banking held in Abuja, Monday the 4th of July 2011, those in attendance included the CBN Governor, Lamido Sanusi Lamido, CBN deputy governor, finance system stability, Dr. Kingsley Moghalu and the Director General Securities and Exchange Commission, Ms. Arunma