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Nigeria’s Central Bank of Nigeria has released guidelines to regulate Sharia Banks in Nigeria
The CBN guidelines stipulates that, in line with the provisions of Section 39 (1) of BOFIA 1991 (as amended), banks offering non-interest banking products and services shall not include the words “Islamic” as part of their registered or licensed name.
The CBN said “they shall however, be recognized by a uniform logo to be designed and approved by the CBN. The CBN shall require all the banks’ signages and promotional materials to carry the logo to facilitate recognition by consumers.”
The guidelines stated that non-interest banks shall be licensed in accordance with the requirements for new banking license issued by the CBN from time to time. This include non-refundable application fee of N500, 000.00 and deposit of minimum capital of N25 billion with the CBN.
According to the guidelines, Six (6) months after the grant of Approval – In – Principle (A.I.P), the promoters of a proposed bank must also submit application for the grant of a final banking license with a non-refundable licensing fee of N5 million payable to the CBN.
All licensed banks or promoters wishing to offer non-interest banking products and services, according to the apex bank, may operate using models such as full-fledged non-interest bank or subsidiary which shall be licensed in accordance with the current guidelines for licensing of banks issued by the CBN.
Other models include a non-interest banking branch of a conventional bank which shall be established in line with extant CBN regulation on bank branch expansion.
The guideline read: “A financial institution carrying on non-interest banking business may charge such commissions or fees as may be necessary and shall be guided by the Guide to Bank Charges issued by the Bankers’ Committee.