Abuja — ... Refuses to nullify Jaiz International Bank's licence
A Federal High Court in Abuja yesterday declared the non-interest financial institution operating under the principles of Islamic jurisprudence as illegal and unconstitutional.
Justice Gabriel Kolawole held that had it not been that the plaintiff, Godwin Sunday Ogboji lacked the locus standi to institute the action, he would have nullified the licence issued to Jaiz International Bank PLC to carry out Islamic banking in the country.
He said: "There are no provisions in the CBN Act and the Banks provided for in the Banks and other financial Institutions Act (BOFIA) that empowers the CBN Governor Sanusi Lamido Sanusi to issue license for non-interest financial institution to operate under the principles of Islamic jurisprudence without the approval of the head of state through the minister of finance.
"Unlike the other specialized banks, the Jaiz International Bank PLC can only be established in the country with the intervention of the National Assembly by amending the BOFIA Act.
"If not that the plaintiff has no locus standi to maintain this action, I would have nullified the illegal license issued to the Jaiz International Bank PLC by the CBN to operate non-interest banking under the principles of Islamic jurisprudence.
"This case is hereby struck out for lack of locus standi, but the AGF should take steps to remedy the situation, and further ensure that the CBN carries out its duties within the provisions of the law establishing it".
Ogboji, a legal practitioner asked the court to hold that the CBN's guidelines for the regulation and supervision of institution offering non-interest financial services in Nigeria under Islamic commercial jurisprudence is ultra vires, illegal, null and void.
But the CBN and its governor had asked the court to dismiss the suit on the grounds that the plaintiff had failed to disclose how the license and issuance of the guidelines had adversely affected him.
He cited Section 10 of the constitution which says government should not adopt any religion.
"CBN does not have the power to designate Islamic Bank as specialize bank", Justice Kolawole held.
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LOL Northerners have HIJACKED the country, and do whatever the hell they want. I have NEVER heard of the governor of the central bank anywhere establishing his own banking decrees, without the legitimate national government standing in and making that decision. An interest free loan from a Bank, established to one corner of the country to serve predominantly one section of the society. The LEGALITY of SANUSI handing out federal money to his folks in Kano, following the killing of a TERRORIST is another nonesense Nigerian have to challenge in court. If his predicesor from the East had done these things in office, what whould they have said? Anyone who can MUST MAKE IT CLEAR to NORTHERN NIGERIA, that NIGERIA IS NOT their PRIVATE PROPERTY.
Thank you Justice Kolawole for upholding the rule of law. I raised this issue last year that neither the constitution of Nigeria nor the acts of parliament granted the governor of the central bank the right to create or license banks.
What is Islamic banking or Non-interest Islamic banking? It is simply a system that prohibits interest in business transactions but adopts the concept of partnership, trading and leasing while engaging in fee based services. That is all!! This prohibition of interest is captured by all major religions like Judaism, Christianity and Islam; and even the masterworks of great philosopher like Aristotle. Adam Smith was a Professor of theology and greatly influence by Biblical teachings which reflected in his first book - “The Theory of Moral Sentiment”. His work on the definition of money was clear, that money should not be a commodity but backed by gold (or real asset); however, neo-classical theories overtime suppressed his original teachings leading to today’s capitalist world. It is in this vein that practical Islamic economic system evolved as congealed in Islamic finance and within the light of moral justice and business ethics. How then, can we say it is illegal; with huge demands from the over 80 million Nigerian Muslims aside many Christians. How about the degree of financial inclusion that is envisaged as a result of the introduction of non-interest Islamic banking in Nigeria? No wonder why global Islamic finance growth is over 20%. It will grow naturally in Nigeria too. Dr Basheer
The Islamic Northners has HIJACKED that country and it will clear every one on his or her eyes.this is what late OJUKWU was fighting for, but most people in NIGERIA was blind to see that and even to say the truth. The time is coming, Northners will do more than that.What is happing today in the North will reach every one.My people look at NIGERIA sinking and no one will escape it till the truth is tell to NIGERIANS AND THE WORLD.
please my there brothers you dont just jump into conclusions with sentimrnts in your heart tell your christain leaders to come up with anything christain bank if there exist any such and if is a viable venture and if any muslim will oppose iys existence on religious ground, after all soludo was the one that gave jaiz the licence and not sanusi also ask for who is the second lagest share holder of that bank and his religion and ask for the only state in nigeria to apply and get loan from an islamic bank i believe their contribution to the development of chritianity in nigeria is am sure more than 100 percent of whar you do yet they embrassed it. Give it a chance please.
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