|
Islamic Banking:How the CBN Governor
Compounded Our Fears
By
Bitrus Kaze
Newsdiaryonline Wed July 27,2011
In
compliance with a House resolution requiring him to clarify the
cash withdrawal limit and the Islamic banking policy, Sanusi
Lamido Sanusi the Governor, Central Bank of Nigeria (the CBN
Governor) appeared on the floor of the House of Reps on Thursday
21st July, 2011. He had a field day courtesy the
Deputy Speaker, Rt Hon Emeka Ehedioha who while presiding,
shielded him from being asked questions. I concur with two
respected colleagues cum principal officers among others, the
Rt. Hons Femi Gbajabiamila and Samson Osagie who described the
Deputy Speaker’s conduct as “an error of judgment” as well as “a
blunder” (Thisday & Leadership 22nd July, 2011). This
breach of our privileges is reminiscent of the Dimeji Bankole
era when those opposed to the views of presiding officers were
shut out if not manhandled.
It
becomes imperative to invoke the fundamental rights of a
Nigerian citizen guaranteed irrevocably under Section 39(1) of
the Constitution of the Federal Republic of Nigeria (CFN 1999 as
amended) to bring to focus serious reservations over the Islamic
banking policy which unfortunately were aggravated by the CBN
Governor’s monologue on the floor of the House.
The
CBN Governor’s repeated reference to some countries including
Britain, USA, South Africa, Kenya and Malaysia where he claimed
Sharia Banking is in operation is premised on the wrong
presumption that since these non-Islamic countries operate
Islamic banking, non-Muslim Nigerians ought not to question it.
The Nigerian nation, unlike any of these nations is exceedingly
sensitive on matters bordering on religion and ethnicity. The
framers of CFN 1999 had this in mind hence Section 14(3) which
provides that “The
composition of the Government of the Federation or any of its
agencies and the conduct of its affairs shall be carried out in
such a manner as to reflect the federal character of Nigeria and
the need to promote national unity, and also to command national
loyalty, thereby ensuring that there shall be no predominance of
persons from a few State or from a few ethnic or other sectional
groups in that Government or in any of its agencies.”
The
Fundamental Objectives and Directive Principles of State Policy
in Section 16(d) of the CFN 1999 as amended provides that the
State shall “without
prejudice to the right of any person to participate in areas of
the economy within the major sector of the economy,
protect the right of
every citizen to engage in any economic activities
outside the major sectors of the economy”
(bold & underline provided).
The
guidelines issued by the Sanusi Lamido Sanusi led CBN states
that “A
Non-Interest Financial Institution (NIFI) means a bank or Other
Financial Institution (OFI) under the purview of the Central
Bank of Nigeria (CBN), which transacts banking business, engages
in trading, investment and commercial activities as well as the
provision of financial products and services in accordance with
Sharia principles and
rules of Islamic commercial jurisprudence.” The Glossary
of Terms of the CBN’s NIFI Framework defines Sharia principles
as “the divine guidance as given by the Holy Qur’an and the
Sunnah of the Holy Prophet and embodies all aspects of the
Islamic faith, including beliefs and practices.”
Pork for example, is a delicacy and a major revenue earner in my
constituency. The Brewery Agro-Research Company, Zallaki near
Jos (though now moribund) became renowned for providing huge
employment opportunities through Pork production.
An
Islamic banking system which prohibits any Pork related
businesses, will exclude my constituents from pursuing a
legitimate economic activity in breach of
their constitutional rights to engage in any economic activity.
Section 1(3) of CFN 1999 as amended provides that “If
any other law is inconsistent with the provisions of this
Constitution, this Constitution shall prevail, and that other
law shall, to the extent of the inconsistency, be void.”
The Bank and Other Financial Institutions Act as amended (BOFIA)
on which the guidelines are hinged, was originally enacted into
law in 1991 as a decree promulgated by the Gen Babangida
administration, the CBN Governor then was Alh Abubakar Ahmed,
both were committed Muslims. Section 37(1)(a) of BOFIA prohibit
banks and financial institutions from using names that project
any religion, this was necessitated at that time because of the
intense heat the country was thrown into (as is the case now)
over Nigeria's membership of the Organization of Islamic
Countries.
Prof Charles Soludo, whose policies including the removal of
Arabic scripts from our currency have been reversed, may have
“approved” CBN’s membership of Islamic Financial Services Board.
However, it is Sanusi Lamido Sanusi who without any recourse to
National Assembly, approved controversial operational guidelines
so heavily injected with the “Islamic” dose and at the peak of
the terror of the Boko Haram sect who incidentally are equally
seeking to enforce the same “Sharia principles.” The expressions
“Islamic” and “Sharia” are the chief offensive labels that have
triggered and sustained fierce antagonism against this lopsided
policy. The CBN Governor was definitely economical with the
truth when he pretended that “Islamic banking is just a name”
(Daily Trust 22nd July, 2011).
The Islamic banking policy is inextricably rooted in the Islamic
religion which is the blood upon which it thrives. In all
intends and purpose, the CBN Governor’s attempt “to remove the
product from religion” (Thisday 24th July, 2011)
cannot be honest, it is an attempt to remove blood from the
human system or to remove fish from water. It cannot survive!
Islamic banking is an exclusive religious product explicitly
hinged on Sharia law; no amount rhetoric can change this fact.
It does not matter how many countries operate Islamic banking,
as long as it is in conflict with the Constitution of the
Federal Republic of Nigeria, it remains unconstitutional.
Notwithstanding huge public outcry, the zeal with which the CBN
Governor has continued to campaign for the enforcement his
Sharia Banking agenda is unequalled in our history; it is enough
ground to hold his motives suspect. It amounts to a conflict of
interest for him to be the lawmaker, regulator as well as the
chief marketer of the Islamic banking system all at once. The
allegation that he has allowed his personal interest to
influence his official conduct in my considered view is very
well founded.
Had the presiding officer put the question, I would have
dutifully voted against Islamic banking so that posterity will
record me as such.
Bitrus B. Kaze,Member ,House of
Representatives,
Jos South-Jos East Federal Constituency, Plateau State
|
