Islamic mortgages take off in Nigeria

Fri, 09 Sep 2011
Nigeria has seen a rise in Islamic mortgages and other Islamic finance options, according to a recent CNN report.

The news provider noted that the country's 70 million Muslims have been taking advantage of Sharia compliant deals to get on the housing ladder.

It spoke to Lotus Capital managing director Hajara Adeola, who claimed there is an increasing interest in Islamic lending .

"It is working in Nigeria and there is a lot of interest in doing Islamic banking, in West Africa in particular," she explained.

"One of the most well known (principles) is the lack of interest or usury, so you can't own a return simply for having money - which is what interest is. You would have to somehow employ that money into productive use and then you can earn a return on that money."

The expert added that approximately 30 per cent of the country's Muslim population would be interested in Islamic mortgages and other forms of finance, meaning it is big business in Nigeria.

Meanwhile, KippReport.com recently looked at Islamic mortgages after the Dubai property crash and asked how far Islamic lenders should go to be considered "ethical".
Salaam-u-Allaikum
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