Nigeria: 'How Islamic Finance Can Succeed in Country'

AllAfrica.com:Professor Mohamed L. Bashar, an Islamic finance and economics lecturer and a board member, Lotus Capital Limited has advocated for a defined regulatory framework to propel the growth of Islamic financing in Nigeria.

Professor Bashar who spoke in Lagos at the first edition of the Lotus Capital seminar series with the theme: Islamic Finance: An alternative approach to project finance and infrastructure development noted that Nigeria represents a huge prospect for Islamic finance system but what is lacking to drive the sector is appropriate legislation.

He saod based on his experience, Nigerians are craving for the system that forbids interest regime and bars investing in immoral activities or businesses that are injurious to man.

The guest speaker at the occasion, professor Monzer Kahf however noted that legislation may not necessarily be the biggest impediment but political will.

According to him, some, if not all of the legislations for the conventional system doesn't necessary affect Islamic financing, arguing that Islamic financing by default meets all the requirements.

Professor Kahf an internationally acclaimed Islamic Finance guru and Chairman of the Sharia'ah Advisory Board of Lotus Capital also said Islamic finance remains the best and cheapest means to source funds to finance long term development projects.

Kahf, who took participants through the nitty-gritty of Islamic finance also said the system doesn't compromise on standards and right investment options.

He said the system doesn't accept debt rescheduling or buy back; it doesn't accept or give interest bearing loans that are speculative and the system always emphasis value addition.

The second speaker, Neo Miller, another Islamic finance expert from the UK also spoke of the usefulness of Islamic financing.

In the UK for instance, he said the vista has helped finance the biggest UK real estate deal, the £2.5 billion Chelsea Barracks deal.UK also, he said is leveraging on Islamic finance instruments to build the tallest building in Europe.

Miller who spoke on the legal concerns of the concept also noted that, Nigeria Islamic finance laws should be integrated into existing local laws for adaptability.

The Chairman of Lotus Capital Fola Adeola said Islamic finance presents fresh alternatives to financing here and thus Nigerians should take advantage of it.