Judicial challenges facing the Islamic finance industry of Nigeria
Document Type
Article
Publication Date
1-1-2021
Abstract
A fundamental requirement of Islamic financial practice, Shariah-compliance covers all aspects of the transaction from contractual agreements to execution to dispute resolution. Thus a sound judicial system with in-built Shariah-compliance mechanisms is indispensable to facilitate the execution of such contracts and to ensure the sustainability of the practice. In Nigeria, this system is still under development with the judiciary the most readily available option for dispute resolution. However, comprised merely of civil courts with jurisdiction to hear Islamic finance cases, these mechanisms subject the industry to possible legal and Shariah-compliance risks. Having conducted a series of interviews with experts, this study recommends: constitutional and legislative reform to grant jurisdiction to existing civil courts; the Financial Regulations Advisory Committee of Experts (FRACE) should be statutorily entitled to offer binding advice to courts; the practice itself should be enshrined in appropriate legislation; and there should be curricular reform to ensure judges and lawyers are adequately trained/educated in the particulars of Islamic finance.
Keywords
Dispute resolution, Banking, Risk
Divisions
fac_law
Funders
Ministry of Higher Education under the 2017 UM-INCEIF Islamic Finance Research Grant
Publication Title
African Journal of International and Comparative Law
Volume
29
Issue
2
Publisher
Edinburgh Univ Press