Credit for this editorial goes to 'papadonkee' who tabled the issue and provided an initial draft

NVS Editorial team, I've been shamed into a warm, fuzzy, silence.

Bravo!

PDP!!!

mallam, papadonkey,...good job up there...anywaz, GEJ is to blame....vivamus.

Ehem, Credit goes to Pap..
NVS Editorial board needs to find Pontius Pilates' towels.

When a leader lacks political conviction, things fall apart.

This is in line with what other commentators have said in the past. The bone of contention is not the concept of Islamic Banking but the mode of its birth. Sanusi should take corrections and abide by the laws of the land. Any attempt to breach or circumvent the laws, irrespective of its good intensions, will always generate opposition and confusion. Laws are meant for the good of both the low and the mighty.

So must we do it the way our colonial massa does it?
In the colonial massa's country most things are privatized. Not so in ours, so who will we be fooling, and who will suffer, when the 'private advisory board', leads to a collapse of our banking system?

Cheap shot!

@NVS
Quote: "The error of judgment in the Nigerian instance is the attempt to insinuate religious constructs and structures like the Sharia Advisory Council into the CBN, a wholly secular, Federal Government establishment." -NVS

The above expression is the plank of your piece. Be it known to Mallam Sanusi that religion and politics are an explosive mix in a circular state. To ignore the above, and proceed with Sharia Advisory Council would be a recipe for disaster.

I'll let your hero provide the justification for his actions:

http://www.vanguardngr.com/2011/02/nigeria-to-commence-islamic-banking-soon-sanusi/



- Reported by Vanguard Newspaper at the 20th anniversary of the Abuja Muslim Forum, February 2011



http://234next.com/csp/cms/sites/Next/Home/5704980-146/nothing_illegal_about_islamic_banking_sanusi.csp



- Sanusi Lamido Sanusi, Governor, Central Bank of Nigeria. May, 2011


PDP!!!

@ Chi2: Thanks for that perceptive comment.

Pius Adesanmi

The system. Yes.
The same monitoring? Hell no! Nigeria needs more strict(Govt.) monitoring of all systems.

You can let your bigotry continue to lead you.

Government monitoring, dear Supes, really isn't the same as a religious conversion. I'm all for increased monitoring, but not for executive impunity. Our public officers must stay accountable to the letter and spirit of the law, even if they have no regard for the lesser mortals they are supposed to serve.

PDP!!!

Me? A bigot?

Never!

"The CBN cannot afford to develop and implement policies in a vacuum, especially when such policies can potentially lead to national instability."

Exactly the result willy Sanusi and his forebearers had in mind before they started this escapade.

They should take a cue from GEJ who of most recent shown that new ideas are welcome but must go through right channels.

We shall see!

Perhaps you do not understand what CBN set up.

Simply a Shariah monitoring body. Do you want it un-monitored?

Maybe I understand all too clearly.

Are the members of this 'monitoring body' CBN staff? Are they civil servants? Then what business do they have performing the CBN's statutory functions?

I'd have been happy with an Islamic Committee set up outside the CBN; one that would work closely with the CBN. One that would, because it was not a part of the CBN, offer advice that the CBN could chose to adopt or not, regardless of who was CBN Governor.

But not this, my friend. Not this...abominable travesty.

PDP!!!

Do or do not staff in the Nigerian ministry regulate hajj and pilgrimage to Israel activities? Are these staff of the ministry not trained in these specific duties?

---------- Post added at 06:26 PM ---------- Previous post was at 06:23 PM ----------

Ya White massa:

http://www.wnd.com/?pageId=80003

YOUR GOVERNMENT AT WORK
U.S. Treasury teaches 'Islamic Finance 101'

The Treasury Department has announced it will teach "Islamic finance" to U.S. banking regulatory agencies, Congress and other parts of the executive branch today in Washington, D.C. – but critics say it is opening a door to American funding of Islamic extremism.

'Islamic Finance 101'

According to its announcement, the "Islamic Finance 101" forum is "designed to help inform the policy community about Islamic financial services, which are an increasingly important part of the global financial industry."

The Treasury Department has collaborated with Harvard University's Islamic Finance Project to coordinate the event. The department says it expects about 100 people will attend the seminar.

Read more: U.S. Treasury teaches 'Islamic Finance 101' http://www.wnd.com/?pageId=80003#ixzz1VhllENQX



------------

So what? Keep letting the bigotry lead you.

Supes, you have a nasty habit of posting stuff that weakens your own arguments. smh.

Federal Government involvement in pilgrimages has actually been a flash-point for the secular/non-secular debate. I'd accept the withdrawal of government involvement. No problem. But you can't use one wrong to prop up another. In simple terms, government's involvement in pilgrimages does not justify Sanusi's actions.

Secondly, I'm glad you pointed out that the U.S. Government is teaching their civil servants who work in regulatory agencies Islamic Finance 101. I'd be happy if the Federal Government sent a team of CBN staffers on such a course.

PDP!!!

I wonder why you feel the need to paint me in the colours of a bigot. Would it make it easier to disregard my sound arguments?

Perhaps you did not digest what you posted.

U.S. Government is teaching Islamic Finance 101.


Not studying, not a course, US Government staff are teaching it!

The CBN governor is rather being propelled by the misguided grudge borne by many a Nigerian Muslim that Nigeria’s secularity is shrouded in the values and myths of Christianity.

Deep inside his heart, the governor knows that his version of non-interest banking system cannot even be a catalyst - talkless an elixir - to secular and capitalist Nigeria’s economic development. Religious politics is the governor's game.

Politics + Religion are not like Water + Oil in the faith the CBN governor professes, Nigeria's political leadership has to be aware of this.

The governor cannot be operating in a vacuum now, where are his seniors in government?

Nigeria as a country has its own idiosyncrasies, it's different from the UK or the US.

Must the CBN governor’s evident politico-religious financial product be left to rock the Nigerian boat?

Are you sure?

IMF: Islamic Banks: More Resilient to Crisis
http://www.imf.org/external/pubs/ft/survey/so/2010/res100410a.htm

Recession sparks interest in Islamic finance - CNN.com
http://edition.cnn.com/2009/BUSINESS/08/25/islamic.finance/index.html

BBC NEWS | Business | Is Islamic finance the answer?
http://news.bbc.co.uk/2/hi/8025410.stm

@SuperEgo:
In which country dis news dey exist?

I do not know why this fella Superego like arguing ad hominem. Where people marshals superior argument, he calls them bigot. While I am not against the establishment of interest free banking but like PapaDonkey, I am against the introduction of religion into the halls of the CBN. That banking system should be implemented within the extant laws or regulations.

You can NOT regulate Shariah banking under the existent system.

What is your problem? The additional salary to pay the few special staff and new department in CBN to monitor what happens in Islamic banking?

I will volunteer to pay their salary from my pocket. Are we ok now? No more hate?

SuperEgo, now you're just contradicting yourself. You're almost lying sef.

YOU posted that the Treasury Department will teach US regulatory agencies Islamic Finance fundamentals. The report YOU posted goes on to state that the Treasury Department will pull this off by collaborating with the Harvard University Islamic Finance Project.

Please note that no special islamic unit was created within the Treasury Department and staffed with islamic experts. A collaboration with outside experts was sought.

That is also the simple, elegant solution your Sanusi could and should adopt. I'll re-post your original submission. it'll be interesting to watch you argue against yourself.



PDP!!!

You really do need to stop sabotaging your own arguments.

1. Please where did you find the word 'fundamentals' in the article i referenced. You are so cute.

2. Read this again, if it was Sanusi that said this, what will you say?

Treasury Department will teach US regulatory agencies Islamic Finance. The Treasury Department will pull this off by collaborating with the Harvard University Islamic Finance Project.


Bigotry takes you down a very narrow path.

I don't have any problem. Now what is the major plank of shariah banking? Is it not interest free banking? Is that is so, must you brand it islamic banking for it to be effective? Why not give licenses to peeps that may want to practice that kind of banking or extend those of the existing banks if they so desire.

1. Now you're just being deliberately dumb. Substitute fundamentals for 101, if it makes you feel better. In my village, 101 na fundamentals. I don't know what 101 means in your village, so maybe it's an honest misunderstanding on your part.

But I doubt it.

2. And I would wet my pants with glee if Sanusi said he would 'collaborate' with the global experts on islamic banking, the Islamic Financial Services Board, instead of crowbaring a Sharia Council into the CBN.

PDP!!!

I've noticed you get pedantic once you start losing an argument. Come back with something punchier, you're better than this

1. It is much more than that. Take some time to get a little information. I'll be here.

2. Giving licensees to non Muslim banks to sell its unique commodities is precisely what Sanusi is doing, by knowledge-fully regulating it.

Guys may wish to get educated:

http://www.entrepreneur.com/tradejournals/article/164222111.html
The Need for Regulation: Current Approaches

Despite the overall bright picture of Islamic finance today, significant questions remain. The most pressing issue is the need for standardized regulation and greater integration between the fragmented areas of Islamic banking. One of the main concerns is that regulators often know less than the Islamic banks do about the Islamic financial products they are supposed to supervise, as the Chicago Federal Reserve noted in a report in 2005. William Rutledge, executive vice president of the Federal Reserve Bank of New York, told the Arab Bankers Association of North America that regulators were participating in more Islamic finance seminars in order to learn about the risks associated with Islamic financial products. There has indeed already been an explosion in Islamic finance education. The Harvard Islamic Finance Information Project (HIFIP), for example, hosted a seminar for the Treasury Department in Washington, DC in April 2002.

The other issue is the lack of coordination between regulators. While the creation of the Islamic Financial Services Board (IFSB) in November 2002 is a step in the right direction, it is just one step. Promisingly, the IFSB was underwritten by the Islamic Development Bank and the International Monetary Fund. The participation of established transnational financial institutions clearly demonstrates both recognition of and support for the creation of regulatory bodies.

Recognizing Unique Concerns

The United Kingdom's Financial Services Authority (FSA) has taken the lead in opening up dialogue with Islamic banks. Not only has the FSA participated in several seminars on Islamic finance, but the agency has also sought to integrate Islamic financial institutions into its regulatory framework. Islamic banks are still held to the same standards as conventional ones. However, recognizing the unique nature of Islamic financial transactions, the FSA has tailored its regulations to meet the new market. Specifically, the profit and risk-sharing nature of financial transactions means that creditors often take on risks traditionally associated with equity rather than debt. Similarly, depositors' accounts take on some characteristics associated with equity stakes. Indeed, this has led some to reconsider whether Islamic banks are actually banks in the first place. Therefore, the FSA has said that capital requirements for Islamic banks may be lower.

[ILLUSTRATION OMITTED]

The FSA has already modified laws to accommodate Islamic financial products. For example, murabahah mortgages used to be subject to double taxation: the bank would pay a stamp duty when it bought the house, and the borrower would pay a stamp duty when he or she bought the house from the bank. The FSA eliminated this double taxation in 2003, leading to a rise in the number of murabahah mortgages. The FSA's willingness to learn more about Islamic financial products bodes well for the industry. Additionally, the agency has adopted a flexible stance toward the regulation of Islamic financial products, which is critical to innovation and growth.

The FSA's approach highlights one major concern regulators face in their consideration of Islamic financial products: should regulators generally apply rules on conventional products to the corresponding Islamic ones? As the FSA's example shows, regulators have tended to keep a level playing field while being sympathetic to the particular concerns of Islamic banks. Bahrain, for instance, has issued guidelines for Issuing, Offering, and Listing of Debt Securities that outline clear requirements for different classes of debt securities, including Islamic bonds. Malaysia has added special requirements for Islamic bonds in its Guidelines on the Offering of Private Debt Securities. Requirements range from more detailed or more frequent disclosures to requiring banking professionals to have adequate knowledge of the Shari'ah. These requirements encourage more transparency, which will lead to greater acceptance of Islamic financial products by investors, particularly in the West.

More Transparency

Part of the development of a regulatory framework includes an increase in information availability. For example, the FSA has noted that depositors in Islamic banks must be aware that their capital is at risk even if the bank does not fail because profit and risk-sharing agreements can suffer losses. In any instance, full disclosure of the risks associated with Islamic financial products is key, as is the case with any other financial products.

Not only will full disclosure benefit current users of Islamic financial products, but greater transparency will also encourage further growth in the industry as potential users become more aware of the risks and rewards Islamic financial products can offer. Mark Smyth, who is managing-director of Falaika International, claimed in 2006 that further development of Islamic capital markets will be endangered if Islamic banks do not look beyond high net-worth individuals and institutions. Greater disclosure will ease retail investors' concerns and make Islamic financial products more accessible.

Greater Integration

Laws specific to Islamic financial products can vary between countries, leading to calls for more coordination between regulatory bodies. Efforts have already been made toward more cooperation. For example, the formation of the International Islamic Financial Market strengthened ties between Sudan, Bahrain, Malaysia, Brunei, Indonesia, and the Islamic Development Bank. These strengthened ties provided an opportunity to discuss the offering of more varied financial products. The creation of the Liquidity Management Centre helped address concerns over low liquidity in Islamic finance and will help protect Islamic banks from default. The long-term outlook is promising, because each country has an interest in promoting the growth of their domestic Islamic financial services industries. Greater cooperation gives investors access to more opportunities, which will encourage more growth in each country participating in these frameworks.

Political factors still play some role in the regulatory environment. Even within predominantly Muslim nations, regulatory practices vary widely. In some countries, including Libya and Morocco, Islamic banks are seen as being linked to Islamic political parties. Therefore, whether or not they actually are affiliated with Islamic parties, these banks are refused licenses. The situation is not substantially better in other countries, particularly those in North Africa; Egypt, Tunisia, and Algeria have been extremely cautious of Islamic banks, allowing them to exist but providing little in the way of regulatory controls.

On the other hand, governments in Bahrain and Malaysia have offered substantial support to Islamic banks. In fact, the IFSB is based in Kuala Lumpur, and the Malaysian central bank, Bank Negara Malaysia, has established an Islamic finance section. Another regulatory agency, the Accounting and Auditing Organization for Islamic Finance Institutions, is based in Bahrain. Iran and Sudan have made their entire domestic retail and commercial banking systems Shari'ah compliant.

Yeah right!! By the way PPD; good job.

Obama and USA; when shall you take the Delta out of the core north? We are waiting earnestly.