COURT DECLARES ISLAMIC BANKING ILLEGAL

Posted by Chiagozie in Home » News, Nigerian News
on June 16, 2012 - 2 Comments
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".