Islamic banking system developed in Nigeria

Aug 17, 2011

Stanbic IBTC Bank Plc (IBTCCB), which is a unit of the Standard Bank Group, will offer a Shariah-compliant banking service in Nigeria.

Stanbic IBTC Bank Plc (IBTCCB), which is a unit of the Standard Bank Group, will offer a Shariah-compliant banking service in Nigeria.

The main goal of this initiative is to facilitate access to finance for the 70 percent of unbanked Muslims and Christians living across the country.

Having already received the Central Bank's approbation, the IBTCCB is planning to offer Islamic banking services at its 160 branches in the fourth quarter of the year.

However, the Central Bank specified that the IBTCCB had six months to set and begin operating its Islamic banking branches, or run the risk of having to reapply for a licence.

In light of this, Deputy Chief Executive of the ABSA Group, Louis von Zeuner recently announced that the institution may offer Islamic banking services if it also received a licence.

A few months ago, Lamido Sanusi, Governor of the Central Bank of Nigeria, said he hoped to see the country become the "hub" of the Shariah-compliant finance in Africa and that he planned to sell its first Islamic bond in the next 18 months.ADNFCR-2976-ID-800701846-ADNFCR