IUG Journal of Humanities and Social Sciences (IJHASS), vol. 1, no. 1, 2016 Research and IT, Islamic University College, Ghana http://ijhass.org

Islamic Banking in Nigeria: Prospects and Hurdles Musa Ahmad Karkarku Faculty of Humanities, Umaru Musa Yar’adua University Katsina, Nigeria. Tel: ++2347068817660 Email: [email protected]/ [email protected]

Abstract — In recent times the Islamic Banking system is increasingly gaining popularity in different parts of the world. In realization of its numerous benefits, it is now being operated in quite a number of Muslim and even non-Muslim countries. In Nigeria, the system is yet to gain much ground. The Islamic Banking system has a lot of potentials in promoting national economic development. Its potentialities and significance are prompting growing interest in Europe and other non-Muslim countries to explore the relevance of operating such banks in their areas. This paper tries to examine the prospects and challenges of establishing the Islamic banking system in Nigeria. Index Terms — Islamic Banking, prospects, potentials, benefits, significance, challenges, hurdles, non-Muslims, Muslims, usury. INTRODUCTION Islamic banking is the system of banking which is consistent with the principles of Shari’ah as contained in the teachings of the Quran and Sunnah. An Islamic bank is a financial institution that operates with the objective of implementing and materialising the economic and financial principles of Islam in the banking arena. According to the Islamic Banking Act 1983 of Malaysia, Islamic Bank is defined as a company dealing in Islamic banking business whose aims and operations do not involve any element against the teachings of Islam (Wikipedia, n.d.). It is purely based on non-interest financial dealings. The Central Bank of Nigeria [CBN] (2011) defines a Non-Interest Financial Institution (NIFI) as: A bank or other financial institution under the purview of the CBN which transacts banking business, engages in trading, investment and commercial activities as well as the provision of financial products and services which are in accordance with Shari’ah principles and rules of Islamic commercial jurisprudence (p.1). It is quite imperative and necessary for Muslims to have a banking system which operates in accordance with Islam. Islamic banks are being operated in some Muslim and even non-Muslim countries, but we are still battling to Manuscript received Jun 21, 2016; revised Jun 29, 2016; accepted August 15, 2016. Corresponding author: Musa A. Karkarku.

see to the full establishment and full operation of the Jai’z Islamic bank in Nigeria. Islamic Economic World View The economic life of man is one of the most important subjects which affect every sphere of human activity from international politics to the private life of the individual. For many centuries, the question of economics has been not only the centre of fervent discussions, at national and international conferences, seminars, and workshops, but even of armed conflicts in some parts of the world. Some people are prepared to take arms for one economic reason or the other, no matter the consequences. However, all the discussions and economic theories which are purely based on human intellect can hardly bring lasting solutions to our problems. Allah (SWT) says: That is because they followed what angered Allah and disliked what earns His Pleasure, so He rendered worthless their deeds. (Qur’an 47:28). There is the need to seek guidance from the divine revelation. As Muslims, we firmly believe that following the divine Shari’ah in every bit of our life is mandatory. Allah (SWT) says: Follow (O mankind) what has been revealed to you from your lord and do not follow other than Him. (Qur’an 7:3). O you who believe enter Islam completely (and perfectly) and do not follow the footsteps of Satan, indeed he is to you a clear enemy. (Qur’an 2:208). Islam approves of the economic progress of man and considers seeking lawful or righteous livelihood as essential. However, it does not regard economic activity in this worldly life to be the basic problem of man, neither does it regard economic progress of man as the alpha and omega of human life. In fact, it should not be regarded as the centre of thought and action or as the ultimate goal of human life. According to the secular philosophy, livelihood is seen as the fundamental problem of man, and economic development is the ultimate target of human life (Mufti, 1979, p. 2). Another important thing we need to note is that ‘wealth’, in all its possible forms, belongs absolutely to Allah (SWT). Therefore, the right of ownership of property which accrues to man, through the legal means recognized

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IUG Journal of Humanities and Social Sciences (IJHASS), vol. 1, no. 1, 2016 Research and IT, Islamic University College, Ghana http://ijhass.org by the Shari’ah, is just a mere delegation status. Hence, it is Allah alone, Who is the real owner of wealth and Who dictates how the wealth/property should be spent within the specifications of the Shari’ah. Islam stipulates that all the economic endeavours just like other facets of life of a Muslim should be governed by the stipulations of the Qur’an and the Sunnah of prophet Muhammad (SAW). Allah (SWT) says: O you who believe obey Allah and obey the Messenger and do not invalidate your deeds. (Qur’an 47:33). In view of this, it is quite imperative and necessary for Muslims to have a banking system which operates in accordance with Islam. Islamic banks are being operated in some Muslim and even non-Muslim countries, but there is so far only one that has started operation in Nigeria. That is Jai’z Bank. The need for Islamic banking in Nigeria however should be considered in the interest of millions of Muslims living in the country. Brief History of Banking in Islam Muslims were the first to lay down the foundation of proper trade and banking in modern civilization (Doi, 1984). Because of this, the present day banking terminologies are full of Arabic terms. For instance ‘cheque’ is originally Arabic. Its etymology goes back to ‘sakk’ (plural sukuk) which literally denotes minting, coining or monetizing (Al-Qamus, 2005). The word ‘buy’ could be from ‘ba’i’ (to sell), tariff from ‘ta’rifah’ (list of fixed charges). The French word ‘acheter’ from ‘ishtara’ (to buy) and other terms are classic examples. The use of cheques among Muslims goes back to the time of the second Caliph of Islam, Umar bin al-Khattab (R. A.) 634-644 A.D. According to Doi, Umar bin al-Khattab was the first to draw cheques and put his stamp underneath and signed them. Doi (1984) also mentioned that Caliph Harun AlRashid (786-809 A.D.) used cheques during his tenure as Caliph in the Abbasid era, and the salaries of the Muslim army were paid through issuance of cheques. From that time onwards the use of cheques by the people as a whole became quite familiar. Centres of money exchange patronized by Muslim merchants proliferated in different parts of the Muslim world. Some of these centres of money business transaction became well established like banks (Doi, 1984). In the post-renaissance era, an important landmark in the history of banking in Islam was witnessed on July 25, 1963, with the establishment of Ghamr Saving Banking in Egypt. It took the form of savings which was based on profit sharing. The bank operated in line with the teachings of Islam which prohibits interest. According to Tanko (1993, p. 7), the Ghamr experiment lasted until 1967, by which time there were nine such banks in Egypt. The banks neither charged nor paid any interest. They invested by directly engaging in trade and industry and sharing the profits with their depositors. The purpose of the banks was to offer interest free loans for socially beneficial projects. But the true advent of full-fledged commercial Islamic banking began in the 1970’s, when a group of Ministers of Finance of some members of the Organisation of

Petroleum Exporting Muslim countries met at Jeddah, Saudi Arabia. They came up with the idea of establishing the Islamic Development Bank (IDB). The Bank serves as an International Financial Institution which promotes social and economic development among Muslim nations the world over. So far the Bank has opened a number of branches in different parts of the world (Tanko). With this development, the Islamic banking system is continuously gaining more grounds particularly in some Muslim countries such as Malaysia, Indonesia, and Saudi Arabia. This has given rise to the emergence of many Islamic banks and Islamic financial institutions such as Faisal Islamic Bank in Kuwait and Sudan, Dubai Islamic Bank, Islamic Bank for Finance and Investment (Jordan) Bahrain Islamic Bank Al-Rajh Islamic Investment (London), Al-Bakarah Investment Company (Bahamas), and Daar al-mal al-Islami (Geneva). These banks and financial institutions operate in areas of deposit without interest but competing with the conventional banks. It could be observed that in spite of some hurdles, the Islamic banks were able to achieve a considerable success in their operations. Perhaps, this impeccable record of performance attracts a number of non-Muslim countries, especially in the Western World, to develop some enthusiasm toward the Islamic Banking System. Countries like United Kingdom, Switzerland, Denmark and Luxembourg have allowed the operation of Islamic banks, side by side with the conventional banks (Chapra, 1979). A common feature of the Islamic Banks is their operation without interest. In fact it is generally noticed that the recent financial crisis in the world economy has adversely affected many conventional banks negatively, while the Islamic banks and Islamic financial institutions continue to boom in many countries. Let us now consider the definition of interest and Islamic provisions on the prohibition of interest which is not allowed in Islamic banking. Definition of Interest Interest or usury is an excess of money paid by borrower to the lender over the principal sum. According to Ibn Kathir (2003, p. 494) riba is any excess paid above a borrowed capital. From etymological viewpoint riba is derived from the Hebrew word ‘rabah’ which denotes to grow, to enlarge, to multiply, to become many or numerous. Semantically, the word ‘riba’ simply means ‘increase.’ According to Encyclopaedia Britannica (2002) usury is the practice of charging an illegal rate of interest for the loan of money. While Microsoft Encarta Encyclopaedia upholds that usury is a payment of interest by a borrower to a lender for the use of money, in excess of the amount fixed by statute. Prohibition of Interest in Islam Islam categorically condemns and prohibits interest and all usurious transactions in strong terms. Allah (SWT) says in Surat al-Baqarah: Allah has permitted trade but has forbidden interest, those who after receiving direction from their Lord desists, shall be pardoned for the past, their case is for Allah (to judge) but those who repeat the offence

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IUG Journal of Humanities and Social Sciences (IJHASS), vol. 1, no. 1, 2016 Research and IT, Islamic University College, Ghana http://ijhass.org are companions of the fire, they will abide therein forever. (Qur’an 2:275). In the same Surah, Allah (SWT) states: O you who believe, fear Allah and give up what remains (due to you) of interest; if you should be believers. And if you do not, then be informed of a war against you from Allah and His Messenger. But if you repent, you may have your principal, thus you do no wrong nor are you wronged. (Qur’an 2:278-279). Yet in another ayah; Allah (SWT) says: Allah destroys interest and gives increase for charities and Allah does not like every sinning disbeliever, (Qur’an 2:276). In Surat al-Imran, Allah (SWT) states: O you who believe, do not consume usury (interest) doubled and multiplied, but fear Allah, that you may be successful. (Qur’an 3:130). The word ‘riba’ used in these verses literally mean excess or addition, which means an addition over and above the principal sum lent. Some scholars apply this term as usury, but it is generally used to include all kinds of interest (Ali, 1973). All these Quranic verses serve as bases for the prohibition of interest in Islam. Prohibition of Interest in Christianity Interest is also prohibited in Christianity as indicated in the Bible (The Gideons International, 1983). Here are some examples: Thou shall not lend upon usury to thy brother, usury of money, usury of victuals, usury of anything that is lent upon usury. (Deuteronomy 23:19). The Bible also stipulates: If thou lend money to any of my people that is poor by thee, thou shall not be to him as a usurer, neither shall thou lay upon him usury. (Exodus 22:25). In another stipulation the Bible says: Take thou no usury of him or increase, but fear thy God, that thy brother may live with thee. Thou shall not give him thy money upon usury nor lend him thy victuals for increase. (Leviticus 25:36-37). These and other similar provisions contained in the Bible are sufficient justifications for the prohibition of all usurious and interest-based transactions in line with the teachings of Christianity. Rationale behind Prohibition of Interest Interest is an unjust and exploitative instrument of financing because the lender is assured of a fixed and definite return without doing any work or sharing the risk of any loss, while the borrower, in spite of hard work, is not assured of any positive return. If the borrower’s investment

happens to be unsuccessful, without any negligence from his part, it would be unfair to demand from him the payment of excess in the name of interest over the capital he borrowed. The prohibition of interest, therefore, serves as an effective mechanism to establish justice between the lender and the borrower. Interest also retards economic growth and development in society, because it promotes inflation and unemployment. Besides, interest eats the social fabric of society. The poor are always at the mercy of the rich. The financial resources are under the monopoly of the rich, while the poor always gets poorer. This brings about hatred, lack of social cohesion and sometimes leads to increase in crime rate due to poverty. There is no feeling of brotherhood or sympathy for the poor, and this makes some of the poor ones resort to all kinds of dubious means in order to earn a living. Interest is purely based on selfish, greed, parsimony, narrow mindedness and harshheartedness. The unjustified high interest rate on loans imposed by rich countries and international financial institutions on borrowers is adversely affecting many citizens of the borrowing countries. This has resulted in the current impending world debt crisis which is bedevilling many poor nations. For instance, Nigeria borrowed 13.5 billion US Dollars from Paris Club between 1965 and 2003, but it paid up to 42 billion US Dollars, because of the accrued interest over the years (Khan, 2008). In societies where interest is prevalent, the rich and economically strong always benefit from the suffering of the poor. Consequently, the rich becomes richer, and the poor continue to be poorer. This often generates envy and hatred between the rich and the poor (al-Qardawi, 1984). In fact Islam has forbidden this kind of unjustified gain in order to protect the poor against the exploitation of the rich. Hamidullah (1981, p. 145) argues: “Nobody pays willingly an interest on what he borrows. He pays only because he requires money, and he finds that he cannot get it without paying interest.” Islam Advocates Risk Sharing Islam allows legitimate trade and wealth creation, but on the basis of equitable risk sharing. Islam does not allow gain from an economic activity unless the financial capital is also exposed to the risk of potential loss. Islam promotes investment on the basis of profit and loss sharing (Khan, 2008). Islam allows a person to be entitled to a profit realized from a business either by way of partnership (sharikah) or co-operation (mudarabah). In this arrangement all parties involved in the business should bear the responsibility of any potential gain or loss in the enterprise. It is unfair to fix a rate of sharing interest on the debtor who might face a loss in his business (Mufti, 1979). Islam demands that in all contractual financial participations, the profit as well as loss should be extended to both parties. As a matter of fact, this principle of mutual participation in profits as well as risks should be observed in all commercial contracts, including bank transactions. As far as Islamic banks are concerned, they undertake three basic functions: Lending money to others on profit/loss sharing basis without any interest, assuring safety of savings

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IUG Journal of Humanities and Social Sciences (IJHASS), vol. 1, no. 1, 2016 Research and IT, Islamic University College, Ghana http://ijhass.org of clients, and remitting of money from one place to another (Hamidullah, 1981). Under the Islamic system, if a Muslim wants to lend his money to another person who might invest the money in a business, he will have to decide first, very clearly whether he wishes to lend this money in order to have a share in the profit or he simply wants to help the person with the loan as assistance. If he means to earn the right to a share in the profit by lending his money, he will then have to adopt the mode of ‘partnership’ (sharikah) or that of ‘cooperation’(mudarabah). This means that he too will have to bear the responsibility of profit or loss. Eventually, if there is a profit in the enterprise, he shall have a share in the profit, and if there is a loss, he shall have a share of the loss (Sabiq, 1992). Islamic Banking in Nigeria: The Journey So Far After Nigeria’s independence an Islamic bank called Muslim Bank of West Africa (MBWA), which operated along Islamic principles, was established. However, its license was revoked by the then Minister for finance, Chief Obafemi Awolowo, under the provisions of the Banking Act of 1968 (Saleh, 2003). Since then, the Central Bank of Nigeria which controls the operations of banks in Nigeria has not granted approval for the establishment of any Islamic bank. During Ibrahim Babangida’s administration in the 1990’s, some decrees were promulgated by the Federal Government which allowed the establishment of profit sharing banking. Under this provision the people’s banks and community co-operative banks operated in different parts of the country. However, no single Islamic bank was registered as a community or co-operative bank. Habib Nigerian Bank Plc. requested a license from the CBN to enable it operate a non-interest window banking alongside the conventional system. However, this noninterest section of the bank is virtually marginalized and not reflecting the true operational principles of Islamic banking (Saleh, 2003). In 2002 the Obasanjo regime had approved only, in principle, the provisions for the establishment of Islamic banking in Nigeria under close supervision of the CBN (Saleh). In August 2010, the Government released a new banking model (alongside the existing conventional banking) which categorised non-interest banks as specialised banks. Such banks having 10 billion naira as capital base operate in all parts of Nigeria, while those with five billion naira capital base can operate as regional banks in six to twelve states of Nigeria. Prospects of Islamic Banking in Nigeria Jai’z International Plc was incorporated in April, 2003, as a public limited liability company. The principal activity of the company is to act as an investment holding for the purpose of establishing a profit sharing bank. The promoters of Jai’z International Plc (who were mainly Muslims) have applied specifically for a banking license from the CBN. The Jai’z Company gave an initial public offer of 2.5 million ordinary shares at one Nigerian naira per share, for subscription. It opened on November 10, 2003 and closed on December 8, 2003. The company was able to have over 3,000 shareholders. This served as a special purpose vehicle (SPV) to establish Nigeria’s first

full-pledged non-Interest bank (Islamic Banking). Many Muslims in Nigeria bought shares and were so eager to see to the take-off of this long awaited Islamic bank. In a document circulated in 2003, Jai’z PLC outlined its objectives, stating clearly that the primary objective of the proposed bank is to optimize the investor’s total returns (Jai’z International PLC, 2003). The day-to-day operations of the proposed bank will adhere strictly to its business objectives. The nature and types of products offered are designed to satisfy providers and users of funds in a variety of ways: sales, trade financing and investments. The basic instruments include cost-plus financing (murabaha), profit sharing (mudaraba), leasing (Ijarah), partnership (musharaka), and forward sale (as-Salam). These instruments serve as the basic building blocks for developing a wide array of more complex financial instruments, suggesting that there is a great potential for financial innovation and expansion in a profit sharing bank. Jai’z Bank Plc obtained a regional operating licence to operate as an Islamic Bank from the Central Bank of Nigeria on November 11, 2011 and started full operations as the first non-interest Bank in Nigeria on the January 6, 2012. It has three branches located in Abuja, Kaduna and Kano. The Islamic Development Bank (IDB) has signed a memorandum of membership (MOM) as a shareholder of the bank. It has also partnered the Islamic Bank Bangladesh for Technical and Management Assistance. The Advisory Committee of Experts (ACE) of Jai’z bank Plc, during its maiden meeting held on the 19th and 20th October, 2011, resolved that an independent “Waqf” type foundation be established. This gave rise to the formation of the Jai’z Charity and Development Foundation on the April 2, 2012, with registration number 51511 under the chairmanship of Alhaji Ahmad S. Maiyaki. Functions of the foundation among others include building mosques, sinking boreholes, constructing roads, building learning centres, and other related capital projects to the community on Waqf basis. The foundation also facilitates agricultural financing and assists entrepreneurial individuals and other small scale industrialists through micro credit. As regards health care, the foundation constructs intervention on medical relieve programs and provides relief materials to victims of accidents or natural disasters such as flood, earthquake, fire outbreak, and civil unrest. The foundation equally renders educational services for the benefit of the community. The basic sources of fund of the foundation include; direct interest (riba) accrued to the bank from its various transactions with other conventional banks and financial transactions; money realized from defaulting investment customers of the bank; fund realized from Blank Documentation; fund realized from income through Zakat from the Mother Bank; the Bank Account Holders; Corporate organizations as well as individuals, staff of the Bank and foundation as well as money realized from the donation and grant of the Mother Bank. Many Muslims in Nigeria are waiting anxiously to see Islamic banking operating, so that they can patronize it in the fulfilment of their religious beliefs (Saleh, 2003). In the light of this, the establishment of Jai’z Islamic bank is a most welcome development for the Muslim Ummah in Nigeria.

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IUG Journal of Humanities and Social Sciences (IJHASS), vol. 1, no. 1, 2016 Research and IT, Islamic University College, Ghana http://ijhass.org Future Plans of Jai’z Bank Plc Jai’z Bank Plc plans to upgrade to a National Operating licence by 2013. Consequently, it will increase its current share Capital Base from 6 billion naira (USD $39 million) to 12 billion naira (USD $78 million). This upgrade will position the Bank to operate in all the 36 states of Nigeria. This will also position the Bank to complete effectively in one of the most thriving financial sectors of the Nigerian economy. The Bank plans to establish 16 branches in 2012 and 100 branches by 2017. It is expected that the Islamic Development Bank, as a key member of its board, will play a leading role in executing these plans. Hurdles Some of the factors hindering the establishment of Islamic banks in Nigeria include: (a) Deliberate refusal or lackadaisical attitude of CBN to grant license for the operation of Islamic banks by coming up with stringent conditions of high capital base requirement of 25 billion Nigerian naira. (b) The CBN has made it mandatory for banks operating in Nigeria to invest in government stocks and treasury bills, which attracts interest. This is repugnant to the principles of Islamic banking. This is not favourable to Islamic banking operations. (c) According to the CBN decrees, it is mandatory on banks to insure depositors fund against loss in line with the insurance policies of Nigeria. This is not consistent with the basic principles of Islamic banking which provides for sharing of loss or profit by depositors. (d) Lack of sufficient mobilization and awareness especially among Muslims on the need for establishing Islamic banks in Nigeria. Muslims have not come out with a strong voice to demand their constitutional right for having banks operating in conformity with their religious beliefs. (e) Scarcity of qualified and committed Shari’ah learned Muslim managers and other staff to run the Islamic banks. Significance of Islamic Banking in Nigeria Non-interest (Islamic Banking) holds a lot of advantages as a profit and loss arrangement. It is based on ethical principle of fairness, transparency and objectivity. The mode of financing is primarily on mark-up, leasing and partnership basis. It also seeks to avoid speculation and deception in all its ramifications (Beekun, 1997). It is a fact beyond dispute that more than half of the population of Nigeria are Muslims. This means that Islam should, in no way, be marginalized in the affairs of this country. The Muslims in this country are for long yearning for a banking system which is totally Islam-compliant. Having such banks will afford the Muslims an opportunity to have an alternative banking system, which is in conformity with their religious beliefs. It should be noted that the constitution of the Federal Republic of Nigeria has granted all Nigerians full rights to practice their religions without any hindrance. Therefore, Muslims in this country should be allowed to operate a banking system which is in conformity with the dictates of their religion. The Federal

Government of Nigeria should recognize this moral right by allowing Muslims in this country to operate Islamic banking system side by side with the conventional banking (Abu Maimuna, 2006). RECOMMENDATIONS (a) Intensive public awareness should be mounted by Muslim scholars in order to effectively sensitize Nigerians on the need to recognise and appreciate the relevance of the Islamic banking system. (b) The wealthy Muslims should also be mobilized and encouraged to pool their resources together in order to provide the necessary financial capital base of the Islamic banking. (c) If there are any laws or decrees that hinder the establishment of the Islamic banks, such laws should be repealed, in the interest of the Muslim Community in this country. (d) In order to achieve successful setting of Islamic banks in Nigeria, we can borrow a leaf from countries where such banks are currently operating successfully such as Malaysia, Saudi Arabia, and Indonesia. (e) The Muslim Ummah in Nigeria should work collectively in giving their unflinching support and commitment to see to the establishment of many more Islamic banks in the nearest time possible. CONCLUSIONS From what has been raised so far in our discussions, it should be emphasized that the time is ripe for Muslims to categorically demand their constitutional right to operate the Islamic banking system not only in Nigeria but also in all parts of the world. The viability of the Islamic banks would no doubt help greatly in bringing economic prosperity to the Muslim Ummah and even to the entire humanity. Let us, therefore, give it a trial, and see how much such Islamic banks would fare with the conventional ones. Obviously, it would serve the collective national interest for a country like Nigeria, with a very large Muslim population, to allow and promote Islamic banks to operate as a matter of expedience. A viable Islamic banking regime in Nigeria would also indicate the readiness of the Government to satisfy the yearnings and aspirations of more than half of the citizenry. With the establishment of Jai’z Islamic bank in Nigeria, it is expected of every Muslim to patronise it, so that it could compete favourably with the already existing conventional banks in this country. We hope that in the near future Islamic banks would continue to flourish even beyond our imagination in all parts of the world.

REFERENCES Abu Maimuna, A. B. (2006). Interest-free banking? Yes! Abuja: Yaliam Press Ltd, Garki. Ali, M. M. (1973). The religion of Islam. Lahore: Anjuman Isha’at Islam.

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IUG Journal of Humanities and Social Sciences (IJHASS), vol. 1, no. 1, 2016 Research and IT, Islamic University College, Ghana http://ijhass.org Al-Muntada Al-Islami. (1997). The Qur’an – Arabic text with corresponding English meaning, Saheeh International. Riyadh: Al-Muntada Al-Islami. Al-Qamus. (2005). Arabic-English dictionary. Lebanon: Dar Al-Kutub Al-Ilimiyya. Al-Qardawi, Y. (1984). The lawful and the prohibited in Islam. Beirut: Dar al-Qur’an al Karim. Beekun, R. I. (1997). Islamic business ethics. Kano: The International Institute of Islamic Thought. Central Bank of Nigeria. (2011). Central Bank of Nigeria Report. Lagos: Central Bank of Nigeria. Chapra, M. U. (1979). The Islamic welfare state and its role in the economy. London: The Islamic Foundation. Doi, A. I. (1984). Shari’ah the Islamic law: London: Ta Ha Publishers. Encyclopedia Britannica. (2002). Encyclopedia Britannica (15th ed.). London: Encyclopedia Britannica, Inc. Hamidullah, M. (1981). Introduction to Islam. Lagos: Islamic Publications Bureau. Ibn Kathir, A. A. (2003). Tafsir al-Qur’an al-Azim. Cairo: Daar al-Fajr. Jai’z International PLC. (2003). Abridged particulars of the prospectus, initial public offer. Lagos: Prompt Ent. Nigeria Limited. Khan, A. A. (2008). Islam and debt. Birmingham: Islamic Relief Worldwide. Mufti, M. S. (1979). Distribution of wealth in Islam. Karachi: Ashraf Publications. Sabiq, S. (1992). Fiqh al-Sunnah. Beirut: Dar al-Fikr. Saleh, A. (2003). An introduction to Islamic Economics and Banking System. Kano: Gidan Dabino Publishers. Tanko, Y. (1993) Islamic Banking Interest-free, Manifold Publishing Company, Kano Nigeria. The Gideons International. (1983). The New Testament (Bible), (new international edition). The Gideons International. Wikipedia. (n.d.). Islamic banking. http://www.iium. edu.my /deed articles/Islamic banking. HTML

Biographies Prof. Musa Ahmad Karkarku, is a Professor of Islamic Studies and Dean, Faculty of Humanities, Umaru Musa Yar’adua University Katsina, Nigeria. Area of specialization: Islamic Thought, Ethics and Morality. Research interest: Islamic manuscripts editing, and translation especially Sokoto Caliphate literature.

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