Inauspicious time for introduction of Islamic banking

 

PAUL ARHEWE 22/07/2011 03:45:00

Again, the intention of Central Bank of Nigeria to introduce the much talked about Islamic banking, into our financial system have showed how sensitive issues with the coating of religion attract public interest in this clime.

From the interpretations given by the Governor of Central Bank, Mallam Lamido Sanusi, Islamic Banking system has some merits that would surely benefit our society to reduce inflation. Maybe there is a truism in this, especially the inherent mercantilist and capitalist bourgeois financial system we have where profit amassment is a prime criterion for measuring success.

Two factors are responsible for the manner in which some Nigerians, especially those from the Christian folks are reacting to its introduction.

First, the introduction of Islamic banking amid the high rate of terror onslaughts in some parts of the country from the Islamic sect, Boko Haram, makes the timing wrong. In the last few years we have all been witnesses to some fanatical religious clashes in parts of northern Nigeria where many families have lost their loved ones, properties and are rendered homeless.

Many churches and mosques were burnt down, even before the emergence of the dreadful sect. The deadly onslaughts from the Al-Qaeda- like sect have heightened the level of extremism and fanaticism in the country. Moreover, the fashion in which Boko Haram executes its mayhems, with the claim that it is protecting the Islamic faith would really becloud any good associated with the Islamic banking system for the country. The situation is made worse with the recent report that Boko Haram has started attacking some commercial banks in parts of northern Nigeria.

The sect admits in that report that it had to attack branches of Unity Bank, Finbank and Bank PHB because their practices are not in line with the Islamic principles. If the sect group has declared that other banks which have western origination are abhorred and should be attacked, it then means in future only Islamic banks would be allowed in parts of northern Nigeria.

Secondly, the messenger (Governor Sanusi) has aided in no small measure in delivering the message in a not too pleasant manner that could incur antagonism all over. The manner in which the CBN governor is insisting that the emergence of Islamic banking is sacrosanct and a must for Nigeria, he is bound to continue to incur many antagonists than supporters It was John Stuart Mill who first proposed the Utilitarian ethical theory which posits that government right action is one that pursues the maximisation of the ‘overall good’. Jeremy Bentham helped to spice it that it is the ‘greatest happiness to the greatest numbers of people’.

Sanusi has reiterated the benefits Nigerians stand to gain, I believe he has considered that it would be worthwhile to Nigerians, but what is the yardstick of his action in consonance with the happiness and good of the greater percentage of Nigerians? Has he measured and had a result that shows over 50 percentage of Nigerians would be happy with the benefits from this banking system? Was subjectivity or objectivity the driving force for the proposed Islamic banking system?

The CBN governor has fueled the resistance of his proposed ‘lauded system’ with the religious nomenclature attached to it. He should have known, maybe he is not disposed to taking admonition from advisers that the name ‘Islamic’ attached to the introduced banking system would surely provoke reactions in a multi-religious state as Nigeria, just as Muslims would react if he has named it ‘Christian banking’. The wise thing would have been, to remove any religious affiliation and changed the nomenclature, even without modifying the system. I dare say the opposition would be, if any, few and inconsequential.