The Central Bank of Nigeria (CBN) has requested for the support and cooperation of the Central Bank of Sudan (CBOS) for the implementation of Islamic banking (non-interest banking) in Nigeria.
A statement issued by the apex bank on Friday stated that, the Governor, CBN, Mallam Lamido Sanusi, while in Sudan for the Council of Islamic Financial Services Board (IFSB), visited the Central Bank of Sudan (CBOS) where he intimated them of the on-going efforts by the CBN to develop a regulatory and supervisory framework for non-interest banking and enjoined the support and cooperation of the Central Bank of Sudan in that regard.
While in Sudan
The statement said, “The Governor, Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi led a delegation from the CBN to the 16th Meeting of the Council of Islamic Financial Services Board (IFSB) in Khartoum, Sudan, on April 5 and 6, 2010. This is the second meeting attended by Nigeria since the CBN became a full member of the Council in January 2009.
The council deliberated on several issues including strengthening of Islamic financial system and approved in principle to establish an inter–governmental special purpose entity to help in building liquidity management infrastructure at both domestic and international levels. This is to be achieved by facilitating cross-border liquidity management among Non-interest financial institutions through the acquisition and maintenance of global pool of sovereign assets. According to the council, such sovereign assets must be suitable for use as underlying asset on which it would benchmark the issuance of highly rated Islamic bonds to be traded globally.
Other areas which the council deliberated and agreed upon include the issue of capacity building among the operators and regulatory authorities with a view to strengthening their operations and ensuring efficient service delivery in the industry. The meeting was preceded by an International conference with the themes, The Changing Landscape of Islamic Finance Imminent Challenges and Future Directions and Developing Capacity Building to Enhance Financial Stability in the Islamic Financial Services Industry.
While in Sudan, the CBN Governor and the delegation visited the Central Bank of Sudan (CBOS) where he intimated them of the on-going efforts by the CBN to develop a regulatory and supervisory framework for non-interest banking and enjoined the support and cooperation of the Central Bank of Sudan in that regard. Responding on behalf of the CBOS, Dr. Ahmad Ali Abdullah, Advisor to the CBOS Governor on Non-interest Banking assured on the readiness of the CBOS to support the CBN in its implementation efforts through experience sharing and capacity building.
Non-interest banking is provided for in sections 9, 23 and 52 of the Banks and other Financial Institution Act 1991 as amended.The CBN delegation comprised of the Governor, Mallam Sanusi LamidoSanusi; Deputy Governor, Financial System Stability, Dr. Kingsley Chiedu Moghalu; Director, Financial Policy and Regulation Department, Mr. Chris Chukwu and others returned to the country last week.
The IFSB is an international standard setting body for the Islamic financial services industry, with membership comprising of regulatory and supervisory agencies across the world, including the World Bank, the International Monetary Fund (IMF), Islamic Development Bank (IDB) and Bank for International Settlement (BIS).”