Author : Ahmad Bello Dogarawa
Publisher :
ISBN 13 :
Total Pages : 15 pages
Book Rating : 4.:/5 (13 download)
Book Synopsis Regulatory and Operational Challenges of Islamic Microfinance in Nigeria by : Ahmad Bello Dogarawa
Download or read book Regulatory and Operational Challenges of Islamic Microfinance in Nigeria written by Ahmad Bello Dogarawa and published by . This book was released on 2019 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: The adequacy or otherwise of the guidelines for the regulation and supervision of Non Interest Financial Institutions (NIFIs) released by the Central Bank of Nigeria (CBN) in 2011 to among other things facilitate the emergence of Islamic microfinance banks along other mainstream banks in the country has been a subject of debate among academics, bankers, finance experts and members of the public. Four years into the release of the guidelines that is expected to serve as an impetus for microfinance banks to provide Islamic microfinance products and services in the country, only one (1) bank was so far licensed by the CBN to provide Islamic microfinance services. Preliminary investigation has shown that Microfinance banks (MFBs) are still not comfortable with the guidelines, which seem to emphasise more on deposit money banks without regard for the peculiarity and modus operandi of microfinance business. This paper discusses the regulatory and operational challenges of Islamic microfinance in Nigeria. The paper, which is exploratory identifies regulatory inadequacies, manpower-related challenges, lack of commitment and challenge of its successful introduction into an existing interest-based system as the main challenges facing Islamic microfinance in the country. In view of these challenges, the paper suggests that the CBN should come up with a separate NIFI guidelines for microfinance banks. In addition, the CBN, microfinance bank operators and professional bodies should provide a lead in the areas of training and development of skilled and qualified manpower in Islamic microfinance processes and procedures. Furthermore, stakeholders, particularly academics and religious scholars should continue to mobilise well to do members of the society to establish microfinance banks that would provide non interest financial services in the country.