By Abdulqadir Ibrahim Abikan (Ph. D)
Abstract
Islamic banking system cannot operate in Nigeria or in any other country without agreement of its principles and practice with the various extant bank and other financial institutions regulatory laws. The usually adopted option is for the regulatory laws to be amended to accommodate the emerging financial system. This research therefore examines the provisions of the existing banking regulatory laws in Nigeria with a view to determining their amenability or otherwise to the principles and practices of Islamic banking. It finds that although the Banks and other Financial Institutions Act, 1991, amongst other laws, prepared a take-off ground for Islamic banking, its provisions are not sufficient for a smooth operation of Islamic banking system. The recent issuance of regulatory framework for non-interest financial institutions by the Central Bank of Nigeria (CBN) does not satisfy the need for a comprehensive substantive legislation, hence the suggested amendments to the existing laws.
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