Sunday, December 22, 2o19 / 07:15PM /
Bukola Akinyele for WebTV / Header Image Credit: WebTV
The total global Islamic Finance assets will reach $3.8trn by 2023, with an annual growth rate of 7.7%.
Mr. Tajudeen Sekoni, the Managing Director of Al-Barakah Microfinance Bank, disclosed in a recent interview with WebTV's "Islamic Finance Weekly."
He said Islamic Finance is now gaining traction over the globe five decades from when it first started in Egypt in 1963.
According to him, the global financial crisis in 2008 strengthened the quest for Islamic Finance as a proponent of Ethical Finance and Ring-Fenced investments.
To further deepen the penetration of Islamic Finance in Nigeria, the Central Bank of Nigeria (CBN) guidelines for Non-Interest Finance in 2011, and the Securities and Exchange Commission (SEC) regulatory framework of 2007, provided the regulatory backing for its operations in the country.
He listed the Islamic Finance products that Al-Barakah MFB will explore to provide services to the unbanked to include;
The MD of Al-Barakah MFB said that in Islamic Finance, there is a unique product provision that fits every particular business or sector of the economy.
"Islamic finance is a viable alternative source of financing because it rests on fair sharing and business without coercion," Sekoni said.
He outlined the major aspects of Islamic Finance to include;
Sekoni commended the CBN for its regulatory support for the development of the non-interest financial market in Nigeria, especially the release of two liquidity instruments in the non-interest banking space.
He also highlighted the regulation that CBN has released on credit bureau operations that will checkmate the serial borrowers. The credit bureau will enable the bank to search for the credit profile of any customer.
Speaking further, he urged the CBN to do more in terms of providing regulations in the area of recovery of loans.
He urged the CBN to explore a policy that wherever the customer's money is, once he or she owes the bank, technology can be deployed to debit their accounts.
Islamic financier also made a strong case for an enabling environment and regulatory provisions that will allow those who have conventional licences and wish to transform, from a conventional status to full-fledged non-interest banking, could do so.
Giving further insight on digital technology, Fintech and current market disruptions, he said Al-Barakah MFB was prepared for the change because it is an era of digital applications or virtual financial intermediation.
On the proposed visit of the President of the Islamic Development Bank (IDB) to Nigeria in 2020, Sekoni said Nigeria should focus on deepening the Islamic Finance framework, collaboration, capacity building on non-interest finance products and also create the enabling environment to access more grants for development.