Developing Nigeria With Islamic Banking Economy And CBN Sharia Council: The Stand Of The Issue

By 

Patrick E. Iroegbu

patrickiroegbu@yahoo.com

Re-branding Nigeria otherwise re-culturing Nigeria was a concept extended from product manufacturing and marketing strategies to the politics of remaking Nigeria’s image for development, investment and internationalization to fit into the global challenges. It was commissioned to launder the image of Nigeria abroad to re-connect and woe investors to it. This was the brain child of the former Minister of Information, Prof. Dora Akinyili. The vision of that politics of marketing and its consequences in the context of re-branding are not likely to end soon. This time, it is being re-invigorated in the banking domain to re-focus, re-launch, re-baptize, re-faith, re-brand and re-market Islamic religion and make it bear fruit on the long warring footprint in the financial health and mood of Nigerians. Re-branding Nigeria can cause culture shock and therefore lead to disinvestment contrary to its original intent and approach. I can see that adding up in the context of putting and prioritizing religion above banking business life and culture. It appears to many observers, including this writer, that the politics of banking is central to everything else and that the Central Bank of Nigeria if captured by Muslims - will capture Nigerian psyche to convert to Islam. That is to say, in the long run of Islamic banking, if it is allowed, will be modelled to lay claim to Nigerian plural religious diversity in its entirety and declare it as a financially conquered Islamic state.

Can the religious players in the field of Nigerian financial economy hear us? Detach religious faith from politics so that our elected leaders will know that they have a job to do – to research, connect and debate issues and shape the education and development of Nigerians and Nigeria. I do not think that we elect politicians to go and debate religion and how to use religion to monetize Nigerian economy. It is the impact of science on religious faith and belief that politicians are often questioned about such concerns as abortion and killing. Politicians are made to show views that reflect their stand on religious matters, humanity and society, in particular how they can deal with related issues with their votes in the house. It is bizarre to waste our precious time debating religion and banking in a circular state such as Nigeria. Let religion, particularly Islamic religion be left for those who worship in Islamic tenets and find their identity through it. What have non-religious persons or church going persons got to do with Islamic banking associated with non-interest elements? Is it not to exert a pull on them to convert and benefit from this ideologically motivated CBN’s Islamic religious instrument of give and conquer? What else can it be other than this? 

It is also critical to observe some huge write ups which writers have put forward arguing for or against Islamic banking in Nigeria in the past few weeks. As alarming as the articles are, one is starting to get more worried whether polarizing Nigeria with religion is all we can now put our energies on to develop it. Of the write ups as I have observed, it seems to me, though, that there is an underlying powerful message we ought to take note of and painfully understand. That message is that ‘there is something fundamentally wrong with using religion to play monetary and banking policy politics in Nigeria’. Why is using Islamic religion to be considered the right thing to do in arranging our banking system? Operators of CBN should think big and global and connect CBN to succeed as a world economic player rather than as a domestic religious trigger and Lilliputian as it is doing now. The latter indulgence as a role will neither create jobs nor an international reputation needed for investors to cash in to invest in Nigeria. Permit me to ask this question. How many people in Nigeria living in USA or Canada, Australia, Britain, Germany, Switzerland, Japan, Hong Kong, or even in South Africa, etc., rely on Islamic banking to transact their finances and economic interests? Have such Nigerians, including Muslims from different Arab nations lost their moral lives because they do not go to Islamic banking machines and counters to do business? Those I know have not.

Therefore, why is the role of the clergy, ordained persons, the Imams, charged to minister to their followers in the Mosques being taken over by the CBN? There is an underlying critical religious agenda that is making the public nervous and therefore traumatized about the move to establish and force Islamic banking on Nigerians. The CBN Chief, Mr. Sanusi is under fire and will continue to be with the notion of Islamic banking in Nigeria. I am sure he now knows this to be so. Any writer feeling the Islamic banking trauma and frustration as I currently do should not hesitate to let the anxiety out so that CBN operators can listen and act right. Our Federal Lawmakers – House of Reps and Senate should educate themselves and work with the people they represent to re-fashion or kill the so-called Islamic banking policy in Nigeria. Allowing Islamic banking in Nigeria is bigoted, short sighted and misleading and should be resisted by none Muslims in Nigeria. The only alternative as some bloggers and tweeters including this writer would like to have is to rename it and disassociate the non-interest banking from any form of religious canons and incentives.  

Apparently, reading some news reports in some Nigerian online dailies one will come across reports showing the mood and anxiety Nigerians are showing. One of such arguments was taken by Journalist Omoh Gabriel’s report in Vanguard online edition (see Monday, August 1, 2011). Omoh’s report was captioned: “Guidelines for non-interest banking require a Shariah Council within the CBN”. With this, it becomes not only clearer but also fashionably disturbing to understand some of the hidden notes of turning the Nigerian Apex Bank into a religious wing-flyer and wind-mobile for Nigeria. The one orchestrated tennis player and umpire who is turning our necks from left to right in all of this is the now CBN’s governor, Mr. Sanusi Lamido Sanusi.

Will anything go wrong if this banker and public banking auctioneer hammer holder is asked to deliver a speech to the nation and explain what is going on? Will he be able to allow Nigerians to follow him on tweeter instead of CBN’s website? If what is being canvassed with the so-called Islamic banking as a non-interest banking portfolio would be in the USA or Canada, I am sure the CEO of CBN will be warranted to say more to the press towards educating the public. Public banking education goes with a feedback to reconsider, sharpen and modify an issue where it becomes necessary. The Islamic banking policy is dotted with religious fears for the general interest and protection of bank users, including the impact of such controversial banking approach mixed with religion on the society as a whole. 

According to Omoh Gabriel, the CBN governor, has been lacking the courage to come out clear to say the underlying truth-hood and falsehood associated with the Islamic banking or so-called non-interest banking or non-gambling crusade. In his report, Omoh cautioned that “The debate going on about whether the non-interest banking is religious would not have arisen if Nigerians had taken the pains to go through the guidelines the CBN circulated and posted on its website before issuing licences to those who applied for the introduction of the non-interest bank in the country”. But how many Nigerians read the CBN’s website or can access the cyber culture? This is a view not weighed on the level of access Nigerians have to electronic governance and posting of information on policy and the banking system in Nigeria. This reporter further stated that “It becomes a deliberate insult on the collective intelligence of Nigerians when the National Assembly, which is supposed to be the voice of the people that elected them, could not engage the CBN governor when he appeared before them” recently to explain what non-interest banking portfolio is all about for the entire Nigerians and friends of Nigeria, if it is not a serious religious crusade. And moreover, that “The guidelines put forward by the CBN for setting up a non-interest bank indicate very clearly that it is an Islamic banking concept to be administered according to Islamic jurisprudence”.

It is crucial to underline the fact that the CBN and Sanusi team are not truthful to Nigerians. Lying to sell religious banking policy is not good in a democratic setting that is asking for accountability, clarity and transparency. Religious and economic democrats will understand issues when such issues are laid out clearly for everyone to see and participate in the process of shaping the policy in question to make sense and serve the generally welcomed and agreed needs. Policies that are woven around hide and seek elements or guidelines are bound to hit the rock of resistance. Religion, as Karl Marx once said, is the opium of the people. It radicalizes and has every potential to do harm or peace. Religious banking of any Sect can do all of the above especially when it is fraught with red iron light to segregate, burn and kill rather than coalesce, illuminate and inspire harmony and growth. That we know. 

Journalist Omoh has put this well when he argued that “What the Apex Bank has failed to disclose is that the guideline for non-interest banking requires the CBN to set up a Shariah Council within the Apex Bank”; which reads as follows, "There shall be an advisory committee on non-interest banking within the CBNto be called the CBN Shariah Council (CSC), which will be out-sourced. That is to say, the CSC shall advise the CBN on Islamic laws and principles for the purposes of regulating non-interest banking business." It is unfortunate to say how the setting up of such Shariah Council to operate as a Counsellor or Advisor to CBN with a long term expectation to transform Nigeria into an Islamic State is cowardly hidden from media publicity and transmission to other religious denominations in Nigeria. I am thinking that if the so-called Islamic banking is true and fair to its intentions, a multi-religious council to advocate for CBN would have been the better take for it.  

As such, who will not agree with this Vanguard online reporter, Mr. Omoh Gabriel who said that what the CBN boss has done amounts to double-crossing the nation? In his words, he said: “It amounts to public deceit for the CBN to say it is pursuing any other thing than an Islamic banking”. Mr. Omoh further lashed out against the CBN boss and his team that what they did not tell Nigerians is that the so-called non-interest banking is this; “It is a bank for the Muslim community in Nigeria which ordinarily should not have evoked the kind of emotions we are seeing now.

It is imperative for the CBN governor and his team to be on the side of caution now. By so doing it is important that he should be courageous enough to say that the CBN instrument, guiding the setting up of any non-interest bank in Nigeria needs to be said without mincing words that it is all about Islamic banking for Islamic adherents. As such, non-Islamic population groups in Nigeria should not be bothered as the instrument will not hurt them – their faith and financial matters. Why is the CBN governor general afraid to shed light on the truths and lies of this banking policy matter?

Having said that, it is important to reiterate the fact that a non-interest bank as it should be said, vis-a-vis Islamic banking in this respect will be, as provided in the CBN’s guideline, "a non-interest bank for Muslims only, which means a bank which transacts banking business, engages in trading, investments and commercial activities, as well as the provision of financial products and services in accordance with the principles and rules of Islamic commercial jurisprudence." Furthermore, that, it is a banking activity where "transactions and contracts under this type of banking are non-permissible if they involve: interest; uncertainty or ambiguity relating to the subject matter, terms or conditions; gambling; speculation; unjust enrichment; or exploitation/unfair trade practices."

Mr. Omoh has carefully explained all we need to know about the robust intent and purposes of this Islamic banking as conceived by Sanusi and his team. Yet he went on and reminded Mr. Sanusi how he forgot to identify with the fact that the CBN is of the practical and philosophical view that "given the increasing number of banks and other financial institutions desiring to offer Islamic-compliant products and services in Nigeria, the Central Bank of Nigeria has developed guidelines for the setting up of such bank with references to the various sections of theCBNAct and circulars of 2007, 1990 and 1991 respectively.

Indeed, by carefully analyzing the deceit woven around the marketing of Islamic banking in Nigeria, Mr. Omoh’s reporting has helped to clarify a lot of the complexity embedded in how people write and preach gospels around the non-interest banking in Nigeria. According to his end firing shot at CBN and Sanusi’s magic wand to down play the seriousness of the traumatizing religious banking policy, he highlighted that by CBN’s definition, non-interest banking in Nigeria is based on Shariah jurisprudence. It is therefore an Islamic bank, let nobody be deceived. Let No Nigerian and friends of Nigeria with discerning Mind and Body Be Deceived indeed. I completely agree.

My take on the run down of this discourse based on Mr. Omoh’s analysis is that the CBN Governor has got a lot of explaining to do. It has just begun. Will he be able to face and douse the anger and trauma raised by his Islamic banking imbroglio or embarrassing and traumatizing situation? And will he courageously attend to Nigerians, particularly; none Muslims with the audacious need to reduce the critical bias and misguided policy in the field of religious faith, commerce and economic development? Nigeria is not an option for Sanusi now and Nigeria cannot be re-arranged and re-branded through a lopsided religious and monetary false path. Can he hear us and heal our mental stresses on this entire non-gambling Islamic crusade on banking and development in Nigeria as it is supposed to?

Furthermore, I have had the chance to comment on Salim Salihu Muhammed’s article of August 1, 2011, captioned “Sustaining Competition in Banking Reforms” in this column. The pointer came with the claim of this article as referred to that "the Islamic banking will encourage the mass public (90 percent) of banking customers with zero based banking products that will boost free enterprise, and in turn reduce unemployment". It should not be quickly forgotten that Islamic religion is feared by Non-Muslims in Nigeria; it is doubtful how the hostility it orchestrates will augur well with making financial banking a peace culture to promote stable investment, uplift spirituality as well as enhance ethical and ethnic harmony. The unstable violent religious relationship that exists casts unfavourable doubt on how to win about 90 percent of Nigerians to buy Islamic banking products both in the short and long run expectations. I have tried to show that no matter how it is argued, Islamic banking will by this writer’s own estimation promote Nigerians to convert to Islam and benefit up to 90% of zero participation requirements. And that is exactly what religion and spirituality is all about. Religion must be able to offer to its adherents risk free and puritan dimension from interest gambling and therefore elevate them to feel that they have gained freedom to enter into paradise. The substantive point is that Nigeria can offer the needed banking products without tying it to religion, unlike Islamic banking, and I have asked, why not? And I will continue to ask so.

I have also found it interesting to stress that we commonly understand that President Obasanjo approved Nigeria’s full membership of the Islamic Development Bank (IDB); which I think in itself does not convert Nigeria and Nigerians to come to terms with Islamic banking conditions of life. It then goes to say that his move can help drive home the point that IDB can do more. Other than limited development programs and to appease the Muslims who sought for it as a political gift from President Obasanjo, I would suggest that this IDB can open out and offer banking products to Muslims in Nigeria for whom it is intended to enhance. Whether at this juncture the proponents of Islamic banking will agree or disagree, one thing we ought to know is that religious banking will become tragic and therefore is unripe for Nigeria unlike other religious based institutions such as universities and colleges.

I am aware that some commentators have held the view that some staunch Christians such as Prof. Charles Soludo and President Olusengu Obasanjo endorsed the idea of Islamic banking and hence the Islamic banking policy when they were in power. This view inclines us to think a little about why the policy was not executed while they were in power also for being Christians for that matter. The politics of citing Christians to be the endorsers of Islamic banking in Nigeria should not be misunderstood. It was hoped to make the policy have a smooth sail in the long run. But it is sad to say that such pro-logical articulation is a misjudgement to think that when a Muslim person takes over the helm of affairs of CBN– that it will work out so easily. Rather than having an easy way, as premeditated, I think what we are seeing now on the contrary is the heating up the polity more than ever before.

In general, the anxiety Islamic faith banking system is raising in Nigeria and among Nigerians abroad is enough to advise and call the backers to order. Is there any good reason why non-interest banking cannot be offered without processing it along religious rhetorics in Nigeria? If non-interest banking is what we are explained it can offer, banks in Nigeria can non-religiously customize it accordingly and serve the public without the faith based fanfare. By so doing, Nigeria’s Apex Bank can be saved from this prevailing religious attitude and polarizing approach so as to focus on finding more useful ways to develop Nigeria. Clear! 

Dr. Patrick Iroegbu is a community health advocate and leader. The author of “Healing Insanity: A Study of Igbo Medicine in Contemporary Nigeria (2010)”.