The Central Bank of Nigeria (CBN) announced that more shariah-compliant banks are expected to emerge due to the economic benefits they have brought to the country. CBN Governor Olayemi Michael Cardoso, represented by Director of Legal Services Kofo Salam-Alada, highlighted the positive impact of these banks during a reception in Abuja for Dr. Umar A. Oseni, Secretary-General of the Organisation of Islamic Cooperation Arbitration Centre (OIC-AC). Despite initial skepticism, the sector has grown significantly and contributed to financing various businesses and infrastructure projects across Nigeria.
Salam-Alada emphasized that the introduction of shariah banking was not an attempt to Islamize Nigeria’s financial system but to provide an alternative financing option. He credited Emir Sanusi for advancing the sector and noted that institutions like Jaiz, Tajj, and Alternate Bank have established a strong presence, reaching a wide range of business entities. The success of these banks is evident in the development of infrastructure projects, such as roads financed by Sukuk bonds, demonstrating their significant contribution to the economy.
Dr. Oseni, in his response, explained the role of the OIC Arbitration Centre, which focuses on resolving investment, commercial, and financial disputes among its 57 member countries. The CBN remains committed to expanding the reach of shariah-compliant financing to grassroots levels, ensuring broader access to financial products and services. The anticipated growth in the number of shariah-compliant banks reflects the sector’s increasing acceptance and its potential to drive further economic development in Nigeria.