Non-interest financial institutions strategic to Nigeria’s economic growth — CBN

The Central Bank of Nigeria (CBN) has reaffirmed the role of Non-Interest Financial Institutions (NIFI’s), in Nigeria’s financial system, noting they continue to play an increasingly strategic role in providing ethical alternatives to conventional finance.

The apex bank, at an Interactive Session between the CBN Financial Regulation Advisory Council of Experts (FRACE) and the Advisory Committees of Experts (ACE) of Non-Interest Financial Institutions, recommitted to strengthening Shariah governance, regulatory clarity, and risk management in the non-interest financial services industry.

A statement by the bank’s corporate communications desk said the Deputy Governor, Financial System Stability, Mr Philip Ikeazor, described the session as a strategic platform for deepening the credibility, resilience, and soundness of the non-interest financial services industry.

Mr Ikeazor noted that the engagement builds on the foundation laid during the inaugural session and reinforces the Bank’s strong commitment to sustaining a sound, credible and resilient non-interest financial system anchored on robust governance, effective compliance, and prudent risk management.

The Deputy Governor, however, observed that as the industry grows in size, sophistication and interconnectedness, it faces unique risks, particularly non-compliance risk, governance challenges, operational vulnerabilities and emerging technological risks.

He warned that such risks, if not properly managed, could undermine public confidence, financial stability and the overall credibility of the non-interest finance ecosystem.

“The objectives of today’s session include fostering the institutionalisation and effective operation of a robust Shariah governance system within Non-Interest Financial Institutions and providing a structured platform for dialogue, knowledge-sharing, and collaboration” he stated.

In his opening remarks, the Deputy Chairman of FRACE, Prof. Bashir Aliyu Umar, stressed that the interactive session was aimed at strengthening governance in the sub-sector and providing a platform for positive and constructive engagement between the CBN FRACE and the ACEs of NIFIs.

He commended the CBN Management for reviving the interactive session, which was first instituted in 2014.

Earlier, in her welcome remarks, Dr Rita Ijeoma Sike, Director, Financial Policy and Regulation Department, reaffirmed the Bank’s commitment to fostering a strong, credible and well-governed non-interest financial services industry.

She noted that the growing diversity of products, institutions, and delivery channels, particularly with the emergence of Islamic fintech, underscores the need for continuous dialogue, sound regulatory oversight and robust advisory input from scholars and practitioners.