Non-Interest Banking in Nigeria: Issues, Concerns and Prospects

Abstract

The framework and practices of non-interest banking is synonymous with Islamic banking. It is interest-free, a profit and loss sharing
arrangement. It derives its specific rationale from the fact that there is no place for the institutions of interest in Islamic order. Its
introduction in Nigeria, has elicited reactions from certain sections of the country who have raised alarm that the CBN under the present governorship wants to Islamise Nigeria through the introduction of non-interest banking services. Against this backdrop, this review paper discusses the issues, concerns and prospects of non-interest banking, and recommends it for developing countries, such as Nigeria.