Nigeria turns to Islamic mortgages

Mon, 18 Jul 2011
Nigeria is reportedly considering turning to Islamic banking in a bid to help it economy grow.

Voice of America reported that the African nation has approximately 70 million Muslim residents and the provision of specialist banking facilities, such as Islamic mortgages, is designed to give them more financial freedom and help the country.

The paying or receiving of interest is forbidden in Islamic law and financial institutions have had to develop special ways of lending to Muslim customers that do not contravene the rules.

An Islamic finance system has worked well in the UK, with the Conference of Islamic Organisations noting that London is battling with Paris to become the world leader in Islamic banking.

However, religious tensions in Nigeria could scupper the plans to introduce it there, with the Christian Association of Nigeria opposing the move.

Father Paul Anyansi of the St Peter Claver Catholic church told the news provider that while he agrees with the Islamic banking system in principal, he is not convinced Nigeria is mature enough as a nation to accept it at face value.

The first Islamic bank to open in the UK was the Islamic Bank of Britain, which was given permission to operate in 2004.
Salaam-u-Allaikum
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