Islamic Banking, Finance to eradicate poverty world over – experts

By Etuka Sunday

Experts on Islamic Banking and Finance from within and outside Nigeria, at the just concluded 1st International Conference on Islamic Banking and Finance saw the possibility of the Bank becoming an effective means of alleviating poverty and engendering Economic Development in Nigeria and the world over.

The experts in a Communiqué issued at the end of the Conference at Bayero University, Kano, Nigeria with the theme, “Islamic Banking and Finance: A Leap from Theory to Practice” observed that Islamic Banking and Finance (IB & F) has become a global reality having been recognized in theory and practice as an integral part of the global financial landscape.

The Communiqué which was signed by the Chairman, Conference Committee, Prof. Shehu Usman Rano Aliyu, said there was a general consensus that Islamic Financial Institutions were thriving and rapidly growing in all parts of the world, saying that a giant stride made in the area of Islamic Banking and Finance in Nigeria was the establishment of Jaiz Bank as the first full-fledged Islamic Bank, Islamic Banking window operations by some conventional banks and the IIIBF as a world class institution that provides training in various areas related to IB & F.

“Islamic Banking has been put on a solid and robust foundation in Nigeria and it has so far taken the position of a truly inclusive financial product accessible to all.

“The rapid growth in Islamic Finance in Nigeria has triggered a remarkable interest in research into issues related to Usul al-Fiqh (Principles of Islamic Jurisprudence), Maqasid al-Shari’ah (Objectives

of the Shari’ah) and other sciences that are essentially related to the field.

“There are still widespread misconceptions among Nigerians, both Muslims and non-Muslims, regarding the operations and viability of Islamic Banking due to inadequate information and, sometimes, prejudice.

“Absence of adequate effective legal and regulatory frameworks is a key challenge to the progress of Islamic Banking in Nigeria.

“There is a growing demand for experts in Islamic Banking and Finance in Nigeria and the world over.

The experts resolved that, “for Islamic Banks to be truly different from their conventional counterparts and make more impact towards poverty alleviation, they should focus more on equity-based financing

modes such as Musharakah and Mudarabah Financing.

“There is the need to encourage more researches on the practical application of the rules of Fiqh al-Mu’amalat (financial transactions) in a manner that it can respond effectively to the changing trends and modern developments in Islamic Finance.