Islamic banking, Non interest banking and religion in nigeria

What is Islamic banking?
Islamic banking or non interest banking focuses on the existence of a real and tangible asset. When money is rented for interest, the trade of money for anything except at par is not permissible as this form of banking is seen as exploitative to some of the parties in the transactions.
Universally world economies as part of a dynamic way of life promotes social interaction at the highest possible level, Islamic banking aims that wealth must be distributed in a way that earns pleasure to the one who provides it and prohibits its earnings like return on interest or sale of product and services that the one that provides the money doesn’t like.
Nigerians are very religious people and it plays an important part in their lives and in the quest for changes and reforms which when viewed more closely, that Nigerians constantly resists anything that will change that form of perception for them or that the reform or change may affect their religious beliefs.
Do you know that the concept of Islamic or non interest banking is not new in Nigeria? When Prof. Chukwuma Soludo was the governor of the central bank of Nigeria (CBN), he actually approved the non interest banking. The BOFIA Act 1991 as amended, section 9, 23 & 52 provides for the establishment of Islamic banking in Nigeria. As a result of the provision, the former Habib bank was given approval in 1992 to operate Islamic banking, which is still operational even after the merger with bank PHB.
Among countries that have embraced and are operating or in the stages of operating Islamic banking but not limited to this countries are South Africa, Dubai, UK, Japan and even China.
The principle of the non interest banking or Islamic banking is not limited to the following:
(1) Making interest on money is not allowed or accepted in non interest banking
Islamic banking sees money only as a medium of exchange, a way of defining value of a thing, just like “Trade by Barter”; the money has no value in itself and should therefore not be allowed to give rise to money.
(2) Islamic bank prohibits payment above the principal sum
Islamic banking allows for only one kind of loan whereby the lender or the Islamic bank does not charge any interest or additional amount over the sum of money lent.
(3) The borrower and the lender shares in the profit and loss of the business venture
Islamic banking encourages Muslims or other people to invest their money and to also become partners in the business in order to share the profit and risk instead of becoming creditors only.
(4) The lender or borrower in Islamic banking support only product and services that are not forbidden
Islamic banking will not invest in products and services that are prohibited in Islam such as financing alcoholic trade or services and investing in gambling activities. Any transaction entered into by the bank should be free from uncertainty and or speculation. Parties to a business venture in Islamic banking cannot predetermine guaranteed profit. This is based on the “Principle of Uncertain Gains”
Having X-rayed some of the bellying factors on Islamic banking; the people of Nigeria deserve to be educated on the principles, practice and use of the Islamic banking in Nigeria in order for them to know the Advantages and disadvantages of this kind of banking. Some of the fears that is been entertained is somehow seen to be sectional but is based on constructive critism on the issue.
This teething phase will pass and we shall see what this kind of banking holds for us, but what does the president of Nigeria think on this issue? As at the time of going online the president Dr Goodluck Jonathan has not said anything on the issue, that is if it is in line with his policies in this dispensation and the cashless society policy.