Islamic Finance – Separating Myth From Reality

Authored by Oluwatosin Lawal*

 Over the past decade, Islamic Finance has become a burning and topical issue around the world (Europe, Middle East and Asia) and has most recently reached Nigeria, over the introduction of the Islamic Banking model to the financial industry by the Central Bank of Nigeria. This has generated outcry from some quarters and a not so unexpected media frenzy. A lot of scepticism and public opinion has been garnered about the motive behind the introduction of this alternative system of banking in Nigeria. However before this alternative mode of financing is dispelled by the general public or the government, the concept needs to be explored and understood in order to clarify its purpose and subsequent effect on the country.