Islamic banking is a phenomenon that has been in existence in other parts of the world. In 2012, Jaiz Bank, an Islamic bank and the first of its kind in Nigeria officially began its operations and at the time seemed to only cater to Muslim clients.
The story is different today as reports suggest that Christians have succumbed to the sweet allure of zero interest banking and this offers the opportunity of a new trend in the Nigerian banking system.
Islamic banking is a kind of banking activity that is consistent with the principles of Sharia (Islamic law), and it is a practical application through the development of Islamic economics.
As such, a more correct term for Islamic banking is Sharia compliant finance. Jaiz Bank refers to it as ethical banking. It is also a system that would be considered favourable to businessmen who constantly need funds to finance business deals and projects.
Presently, Jaiz Bank has clients that are not of the Muslim faith and many Christians have expressed their displeasure at the fickle faith of Christians who operate and save with the bank. However, Muslim faithfuls have been heard discussing the merits of the bank especially with the current situation in the country.
Tunde Aderopo, in Ibadan opines that “from a religious point of view, Christians should avoid it. However, if a Christian must embark upon such an endeavor, then there should not be any violation of the Christian faith as the banking principle is Islamic based. If any of the terms and conditions violates the Christian faith, then a true Christian shouldn’t go for it.”
Pastor Femi Abegunde, gives a firm opinion that “Christians should just simply avoid it. While it preaches equitable distribution of liabilities among bankers, it does not give interest yet it pays dividends instead. While it seems attractive in terms of cost, I believe that there is a very high propensity for money laundering to propagate an Islamic agenda. Regulations also follow Islamic laws which give the government minimal interference. I am not under an Islamic law, so why would I invest my money with a bank that will use it to propagate an Islamic agenda against my faith.”
One cannot but sympathise with Nigerians and their sometimes fragile loyalty, what with the economic situation of the country coupled with the need to sideline exorbitant interest rates of some Nigerian Banks in terms of loan repayment.
With headquarters in Abuja, Jaiz Bank is in the process of expanding to urban centers in all 36 states of the country. The shares of stock of Jaiz Bank Plc are privately held with five major shareholder groups.
