Umaru Mutallab spoke in Abuja.
The Chairman of the Board of Directors of Jaiz Bank Plc, Umaru Mutallab, on Tuesdaysaid the Central Bank of Nigeria, CBN, and other regulatory authorities in the banking sector, should urgently consider developing “Sharia-compliant liquidity management instruments” for non-interest Islamic banks to invest in.
Mr. Mutallab, who was speaking in Abuja at the National Conference on Islamic Banking and Finance in Nigeria, organized by Shaikh Nsir Kabara Research Centre, noted the efforts by the Central Bank, Nigeria Deposit Insurance Corporation, NDIC, Debt Management Office, DMO, and Securities and Exchange Commission, SEC, in setting up the required regulatory framework for the establishment of non-interest Islamic banking in the country.
He, however, said that there was more to be done, especially in the area of Sharia compliant liquidity management instruments, adding that stakeholders in the industry should expedite the process to create a level playing field for all the participants in the financial service sub-sector.
Mr. Mutallab, who noted that the controversy that trailed the introduction of non-interest Islamic Banking and Finance in the country by the Central Bank has gone down, as people of all faith are beginning to understand and embrace this alternative mode of banking, said there was need to explore more opportunities to enable the system grow.
“We at Jaiz Bank Plc are proud to have pioneered the setting up of the first full-fledged non-interest bank in the country,” Mr. Mutallab said. “I am confident that as we continue to expand and create the much needed knowledge and awareness of Islamic finance, people will begin to understand and accept it.”
“This is important, because, globally, the market for Islamic banking is growing rapidly, and this robust growth is expected to continue into the foreseeable future. In many parts of world, Islamic banking has evolved from being just a niche offering, into being part of the mainstream financial service landscape. I strongly believe that this trend will replicate itself here in Nigeria and other parts of Africa,” he added.
Mr. Mutallab also commended the organizer of the event for bringing together all Nigerians to share in the understanding of the fundamental principles, operations and potentials of Islamic Banking and Finance in engendering socio-economic development of Nigeria.