How Far Islamic Banking Has Gone Globally and Nigeria in Particular

Abstract

Objective- Non interest banking, also known as Islamic banking is a system of banking that does not permit interest to either be given or received by the bank for the maintenance of their customers or client account or any contract between them and their clients. In its operation, it has witnessed rapid expansion globally since first established 30 years ago. In Nigeria, it is a new concept and its establishment has been challenging. This study was carried out with the aim of appraising its operation globally and in Nigeria in particular using the conceptual and theoretical frame work. Methodology/Technique The challenges faced in its operation such as unfamiliarity and wrong perception by the populace, regulatory framework, implementation process, liquidity management, lack of professionals among others are highlighted. The differences between it and the conventional bank are also considered. Findings The study recommends that there is a need to develop research and development units comprising of scholars, marketers, professionals and skilled bankers. Novelty - The Nigeria government and the central bank should not relent in public awareness campaign for wider acceptability as this will benefit the poor member of the community as they will have easy access to interest free loan for small scale business. Type of Paper Empirical paper Keywords: Banking, Conventional Banking, Interest, Islamic Banking and Shari'ah.