The Central Bank of Nigeria (CBN) has reiterated the importance of non‑interest financial institutions (NIFIs) in the country’s financial architecture, emphasizing their growing role in offering ethical alternatives to conventional banking. The reaffirmation came during an interactive session that brought together the CBN’s Financial Regulation Advisory Council of Experts (FRACE) and the Advisory Committees of Experts (ACE) representing NIFIs.
Deputy Governor for Financial System Stability, Philip Ikeazor, opened the meeting by describing it as a strategic platform for enhancing the credibility, resilience and soundness of the non‑interest sector. He noted that, as the industry expands in size, sophistication and interconnectedness, it confronts a suite of emerging risks. Non‑compliance, governance lapses, operational vulnerabilities and technological challenges were highlighted as the most pressing threats. If left unchecked, these risks could erode public confidence, destabilise the financial system and damage the reputation of the non‑interest finance ecosystem.
The session’s agenda centred on three objectives: strengthening Shariah governance within NIFIs, providing a structured venue for dialogue and knowledge‑sharing, and fostering collaboration between regulators, scholars and practitioners. Ikeazor stressed that robust Shariah oversight, clear regulatory guidance and prudent risk management are essential to sustain a credible and resilient non‑interest financial system.
Prof. Bashir Aliyu Umar, deputy chairman of FRACE, echoed the deputy governor’s points, emphasizing that the meeting was designed to fortify governance in the sub‑sector and to revive the interactive dialogue first launched in 2014. He praised the CBN’s renewed commitment to regular engagement with the ACEs of NIFIs, calling it a positive step toward constructive regulatory collaboration.
In her welcome remarks, Dr Rita Ijeoma Sike, director of the CBN’s Financial Policy and Regulation Department, reaffirmed the bank’s dedication to a well‑governed non‑interest financial services industry. She highlighted the rapid diversification of products, institutions and delivery channels—particularly the rise of Islamic fintech—as a driver for continuous regulatory oversight and informed advisory input from both scholars and market participants.
The CBN’s statements reflect a broader policy direction that recognises non‑interest financial institutions as strategic contributors to Nigeria’s economic growth. By foregrounding Shariah compliance, regulatory clarity and risk mitigation, the central bank aims to ensure that the sector can expand safely while offering consumers finance solutions aligned with ethical and religious principles.
Looking ahead, the CBN indicated that it will continue to engage with industry stakeholders to refine governance frameworks, address technological risks and monitor emerging compliance challenges. The ongoing dialogue is expected to shape forthcoming regulatory reforms and support the sector’s contribution to financial inclusion and sustainable development in Nigeria.
