Islamic Finance | |
Islamic Finance | |
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Friday, July 03, 2020 /
1:00 PM / Bukola Akinyele for WebTV / Header Image Credit: WebTV
Human Capital Development is critical to the growth
and deepening of Islamic Finance and Banking in Nigeria, Mr. Olanrewaju
Sharafa, a Chartered Accountant, Principal Lecturer & Head of Division
Adult Learning in Tower College, London, United Kingdom, disclosed this as a
guest on the WebTV's Islamic Finance Weekly Program.
Speaking on the relevance
of Islamic finance education and research in the modern age, Sharafa believed
Nigeria was one of the countries with a growing interest in Islamic banking and
finance. The successes of the Federal Government of Nigeria's (FGN's) various
Sukuk issuances(2017, 2018 and 2020) indicated the wide acceptability of
the instruments.
According to him "If we intend to achieve further
growth in the industry we need to pay attention to human capital development by
ensuring that workforces who can drive all these industries together are
well-equipped with the requisite knowledge, skills and competency that is
required".
He was of the view that Nigeria had the opportunity to
tap into the benefits of Islamic finance to achieve economic development and
nation-building.
He made references to scholars such as Dr. Raim Lukman
and a few others who put useful thoughts into a publication titled "Embedding
Islamic Financial System (IFS) into the Nigeria curriculum" especially in
the areas of finance and banking studies.
In the article, the authors went further to say "academic exposure within Islamic Finance is therefore imperative because it
will enable a viable global economic model".
According to Sharafa, it was time to adopt viable
global economic models which focus on operating an Islamic Finance System that
is based on the concepts mentioned by a renowned expert Iqbal Khan,
during his visiting lectures at the London School of Economics titled, "The
History and evolution of Islamic Finance".
Sharafa citing Iqbal said the scholar believed that to say Islamic Finance is a viable model to an economy, there is a need to appreciate the concept of what Islamic finance is all about. Sharafa noted that Khan highlighted the fact that Islamic finance is about the following;
Such developments show contributions in terms of
education and developing capacity in Islamic Finance. He concluded that if one
wants to trace the relevance of Islamic finance, it would be its contribution
to the community-based ethical investments and enhancing knowledge and human
capacity development.
On where individuals can
acquire deeper knowledge, the Islamic finance expert stressed the need for
Institutions and Professionals Bodies that Offer
Islamic Finance Qualification to scale their activities. The lecturer said to
create value within the industry, there is a need to pay attention to human
capital development. He said universities and professional bodies will be a
vital part of the ecosystem in developing Islamic finance studies.
He recommended that interested professionals who
intend to deepen their knowledge of Islamic Finance should subscribe to the
WebTV Islamic Finance Weekly program, especially for its rich content, relevant
topics and the quality of guests.
He said the National Universities Commission (NUC)
would have to work out modalities of how universities in Nigeria could embed
Islamic Finance studies as an academic program due to a degree qualification
and even post-graduate level.
"I am yet to see a road map and quality assurance
arrangement put forward by the National Universities Commission (NUC) as it
relates to the standardization and regulation of the Islamic Finance
curriculum," Sharafa explained.
Speaking on International Universities, Sharafa explains that there are several Universities internationally that have done work when it comes to developing qualifications leading to the award of degrees, master's and Ph.D. in Islamic finance and they are widely recognized globally. On professional education, Sharafa cited the Institute of Islamic Finance Professionals of Nigeria (IIFP) ) led by Professor Tajudeen Yusuf. He said IIFP is the only professional body in Nigeria that has three-level approvals from :
He said IIFP was incorporated and limited by guarantee
to promote Islamic Finance Education in Nigeria. The Institute has several
collaborations around the World which include: - Education Partnerships with
the Institute of Islamic Banking and Insurance, (IIBI) in the UK - The Standard
Setting body for Islamic Accounting and Auditing: Accounting and Auditing
Organization for Islamic Financials.
The scholar said, IIFP in Nigeria has a collaboration
with the London Centre for Training & Development (Executive Masters & Short
courses on Islamic Finance).
In respect of international Professional bodies that
offer Islamic Finance qualification, Olanrewaju pointed to The Chartered
Institute of Management Accountants (CIMA) Islamic Finance Examination
(Certificates & Diploma in Islamic Finance)- The Chartered Institute For
Securities & Investment, Islamic Finance qualification - Long-established
short courses and diploma programs designed by the Institute of Islamic Banking
and Insurance (IIBI) to manage distance learning on Islamic Finance and the
Institute of Financial Accountant in the UK. (IFA) has several resource experts
who deliver relevant training in the area of Islamic Finance.
On the role of the Accounting and Auditing
Organization for Islamic Financial Institutions
(AAOIFI) in providing guidelines around Islamic accounting and auditing within
the CIMA syllabus, He thought that a comparison of Islamic Finance training in
Nigeria and International Certified bodies qualification exposed a major gap.
Speaking on academic theories he said that it was ideal
for a researcher to either develop theories around Islamic finance or test a
new theory around Islamic Finance.
He was of the view that it is always ideal to ensure
that the fundamental principles of Islamic finance were embedded in a
theoretical framework that forms a bedrock for the studies. He said whether it
involves developing or testing a theory on Islamic Finance it would serve as a
policy contribution to stakeholders, government, and the outcomes will also be
useful for further research. He was of the view that individuals and
scholars should be encouraged to embark on research around Islamic finance
either by testing a theory or developing a new theory.
"The willingness of individual contribution to
research is there, but the major challenges in Nigeria is funding and a
supportive environment"
He called on stakeholder action and engagement around
how the industry players, government, regulators and professionals could
support research and education initiatives within Islamic finance, preferably
by collaboration.
He also made a strong case for the two pioneer
accounting professional bodies in Nigeria ICAN and ANAN to expand their
collaboration with local and international professional institutions to employ
continuous professional development (CPD) and embed some aspects of Islamic
Finance into their curriculum. Sharafa felt that this would enhance accounting
education and build capacity in the area of Islamic finance.
He made the following additional recommendations;
He said, there is a need for institutions and
industries to support educational arrangements including professional bodies to
help them build capacity and provide continuous professional development for
their staff. Also, the NUC should provide guidelines for universities on how to
design and embed quality assurance metrics for subjects in their degree and
post-graduate programmes.
Speaking on the challenges, including funding that
might prevent professionals from enrolling for international courses and CPD,
he said international courses are expensive.
He identified funding as a big issue and the threat of
COVID-19 pandemic and its travel restriction implications as a major
stumbling block to the growth of cross border professional education. He was of
the view that online learning is now becoming a viable option and an
alternative of choice.
He was of the final view that businesses that were
based on the ideology and principles of Islamic finance were becoming
increasingly successful.
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