CBN and Islamic Banking

The CBN Governor was quoted has saying that the prevailing economic meltdown has increased the demand for Islamic financial products and services across the world. And according to him, in spite of the crunch, Islamic institutions have displayed "strong resilience reflecting their conservative approach to business, balanced and ordered appetite for growth and focus on the basis of financial intermediation as opposed to innovation." And as result, the CBN will soon introduce Islamic banking in Nigeria to help stabilise the sector as fallout from the problems it is experiencing.

The CBN Governor’s statement has however generated some much controversy. Some have argued that being a secular state, Islamic banking cannot be practised in Nigeria. There is also a growing section of the Nigerian society who feel that Mallam Sanusi’s statement gives credence to the conspiracy theory that he is only acting the script of the northern cabals, who are alleged to be bent on taking control of banking sector. But I’m still at a loss regarding the relationship between the so-called Northern Agenda and Sharia banking. How can anyone be sure that principles of Sharia banking favours everyone in the north. To describe the proposed introduction of Sharia banking has a “Northern agenda” smacks of ignorance. What is the definition of Northern Nigeria? Is it everyone in Northern Nigeria that actually supports the Sharia system? Anyway, that is an aside issue.

Islamic banking is not a new phenomenon, even in other secular nations. For the example, the first Sharia bank in Western Europe was established in the United Kingdom in 2004. Major high street banks such as Lloyd Banking Group and HSBC also offer Islamic banking products to interested customers. It refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Sharia) and its practical application through the development of Islamic economics. The overarching principle of Islamic finance and banking products is that all forms of interest are forbidden. The Islamic financial model works on the basis of risk sharing.

However, in spite of the acceptance of Islamic banking into mainstream banking in Western secular nations, it does not fit into the current Nigeria banking system. This is primarily because there are no laws permitting Islamic banking in Nigeria. The nation’s financial regulatory framework does not permit any form of religious banking. This however does not mean it cannot be introduced. It only means that changes will have to made to the nation’s banking laws.

So does introduction of Islamic banking means Islamisation of the nation? My answer to that is No! As noted previously, the introduction of Islamic banking will require massive changes to banking laws. Personally, I have no issue with the introduction of Islamic banking as long as it is not been forced on everyone. The principle of secularism demands, the state should not be promoting any religion directly or indirectly. All citizens should be treated equally regardless of religion, and preferential treatment should not be given to any person from a particular religion over other religions. Therefore, the CBN policy towards Islamic banks, will need to be “no obstacles, no special favours”. The CBN will have to promote a level playing field between conventional and Islamic banking providers. It is the role of the regulator to ensure that the ethics of such banking practices does not undermine the integrity of the national economy.

For me, if the introduction of Islamic banking will bring in the much needed foreign investment into the country, then why not? We need not to be hypocritical about some of these things. The religious jingoist do not want Islamic investments in our banks but are happy to have Arab companies such as Etisalat, Zain operating in our mobile phone industry. We may need to remind such people that these companies originate from Islamic nations.

Also, what stops other religious organisation from raising enough capital and applying for a bank licence. We already have religious organisation investing heavily in the education sector. If religious organisations can be granted licence to establish faith-based schools, then why not banks?

We are a nation of diverse religious beliefs, and if anyone believes religious banking practices is in line with his belief, then let him or her do so. As long as it is not to the detriment of the national economy.

Gani Fawehinmi - Rest In Peace

Abdul-Ganiyu "Gani" Oyesola Fawehinmi (22 April 1938 - 05 September 2009) was a Nigerian author, publisher, philanthropist, social critic, human and civil rights lawyer and Politician. Gani, as he is fondly called, died in the early hours of 05 September 2009 after a prolonged battle with Cancer. He was 71 years old.

Gani, was born on 22 April 1938, into the Fawehinmi family of Ondo, in Ondo State.

His father, Chief Saheed Tugbobo Fawehinmi, the Seriki Musulumi of Ondo was a successful timber magnate, a great philanthropist, an opponent of excessive taxation of the poor and a deeply religious muslim leader. He was reported to have brought Islam to Ondo Town. Chief Saheed Tugbobo Fawehinmi died on 5 February 1963 at the age of 89 years.
Gani's grand father was the Late Chief Lisa Alujanu Fawehinmi of Ondo, who engaged in several successful battles for and on behalf of the Ondo people in the nineteenth century. Hence, the appellation the 'Alujanun', which means spirit. He died at the age of 92.

Gani had his early education at Ansar-Ud-Deen Primary School, Iyemaja - Ondo from 1947 to 1953 and his secondary school education at Victory College Ikare, a Christian School from 1954 to 1958, under the leadership of the Late Rev. Akinrele where he sat for and passed his West African School Certificate Examination in 1958.

Gani enrolled at the Holborn College of Law- University of London to read law in 1961. While at University, his father died. He completed his degree in London with a measure of difficulty due to lack of funds(From his father). This involves doing various menial jobs in London.

While in college, he was popularly known as "Nation" because of his passionate interest in national, legal and political affairs. He was an avid reader of Daily Times and West African Pilot, the most popular newspapers at that time.

In 1993 Fawehinmi was awarded the biennial Bruno Kreisky Prize. This prize, named in honour of Bruno Kreisky, is awarded to international figures who advance human rights causes. In 1998, he received the International Bar Association's Bernard Simmons Award in recognition of his human-rights and pro-democracy work. In 1994 he and some other notable Nigerians formed the National Conscience Party of Nigeria which exists till today and he stood for a presidential election in 2003 under the umbrella of the National Conscience Party.

Gani Fawehinmi became a holder of the Senior Advocate of Nigeria (SAN) the highest legal title in Nigeria in September, 2001

With his boundless energy he tenaciously and uncompromisingly pursues and crusades his beliefs, principles and ideals for the untrammelled rule of law, undiluted democracy, all embracing and expansive social justice, protection of fundamental human rights and respect for the hopes and aspirations of the masses who are victims of misgovernance of the affairs of the Nation.

In 1986, while Chief Gani Fawehinmi was Dele Giwa's Lawyer, the later was killed in a bomb blast under suspicious circumstances .
As a result of his activities chief Gani Fawehinmi, was arrested, detained, charged to court several times. His passport was also seized on many occasions. His residence and Chambers were searched several times. He was beaten up many times and was deported from one part of the country to another to prevent him from being listened to by the masses. His books were confiscated by the Federal Military Government and And his library at Surulere , a suburb of Lagos were set ablaze. Even his Chambers at Anthony Village, Lagos State, was attacked and invaded by persons suspected to be agents of the government 26 August 1994 and they shooting his Chambers guards,in the process, seriously wounding two of them.
In the process of his crusades for the rule of law, the hopes and aspirations of the poor and the oppressed, he fought many battles against the military dictatorship as a result of which he had been arrested several times by the military governments and its numerous security agents. He had been dumped in many police cells and detained in several prisons between 1969 and 1996.

His supporters have call him "the scourge of irresponsible governments, a thermometer with which the blood pressure of dictators is gauged, the veritable conscience of the nation and the champion of the interests and causes of the masses".
His promotion to becoming the Senior Advocate of the country was delayed as a way to victimise him. Eventually, he got the award in 2003 i.e. the Senior Advocate of Nigeria.

In 2008 Mr Gani Fawehinmi rejected the highest order that can be bestowed on a citizen by the Nigeria government—Order of the Federal Republic(OFR)—in protest of year of misrule since independence.

Many of Nigerians call him the people's president

Source: Wikipedia