…Grows at 10-20% annually
From Walter Ukaegbu, Abuja
Fresh facts have emerged that Islamic finance industry grew at 10 – 20 per cent annually while “Shariah compliant financial” assets are estimated at $2 trillion, covering bank and non-bank financial institutions.
Alhaji Sani Aminu Dutsinma, Managing Director/CEO, Islamic Banking and Finance Institute of Nigeria, made this disclosure yesterday in Abuja during a sensitisation workshop for journalists on the “Fundamentals of Islamic Economics, Banking and Finance” organised by Islamic Banking and Finance Institute Nigeria in collaboration with the Nigeria Union of Journalists (NUJ).
According to Dutsinma, Islamic banking assets have been growing faster than conventional bank assets while there were increased interest in Islamic finance from countries like the Uk, Luxembourg, South Africa and Hong Kong.
He stated that within sub-Saharan Africa, South Africa led the way with one of the largest international Islamic banking. Conglomerates called Al-Banka Banking Group.
“Since the introduction of Islamic finance in Nigeria some 18 years ago, concerns and apprehensions have been voiced that the introduction might be a ploy to Islamise Nigeria. But as at today, we are yet to receive any report of religious discrimination as regards access to any Sharia compliant products or v, he said.
He said Islamic finance is not reserved for Muslims only as it is not a Muslim finance, with no such tag on Islamic finance products either in Nigeria or in any other part of the world.
He explained that the products are designed according to defined principles and vetted by learned scholars, insisting that if one likes the product, he adopts it.
Dutsinma called on Nigerian policymakers to recognise Islamic finance as capable of significantly contributing to economic development, given its direct link to physical assets and real economy.
“The use of profit and loss sharing arrangement encourages the provision of financial support and generates jobs. The emphasis on tangible assets ensures that the industry supports only transactions that serve a real purpose thus discouraging financial speculation,” he emphasised.
Dutsinma was of the opinion that Islamic finance helps promote financial sector development and broadens financial inclusion by expanding the range and reach of financial products, while helping to improve financial access and foster the inclusion of those deprived of financial services.