The Operational Implication of the Challenges of Islamic Banking in Nigeria.

  • A. Mallum Department of Economics, Yobe State University, Yobe State - Nigeria
Keywords: Shari'ah Banking, Sampling, Findings, Challenges, Performance


Islamic banking was introduced in Nigeria as an alternative to financial intermediation with its mode of operation strictly in line with the principles of Shari’ah. However, its operations have been constrained partly by, both the judicial and financial institutions in the Country. The main objective of this study was to empirically examine the operational challenges of Islamic banking in Nigeria with particular reference to JAIZ International Bank Plc. We used both descriptive and inferential methods of analysis and adopted the non-probability sampling technique because it provides a better opportunity for administering questionnaires directly and individually to the respondents. The major findings of this study are: 1) the legal framework makes very limited provision for the operation of Islamic banking in Nigeria; 2) religion, manpower and moral hazards significantly lagged the operations of Islamic banking; and 3) competition with conventional banks is a major setback to Islamic banking in Nigeria. These key findings show that operational challenges are a major setback to the performance of Islamic banking in Nigeria and above all, competition with conventional banks affects the operations of Jaiz Bank significantly.


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How to Cite
A. Mallum. (2016). The Operational Implication of the Challenges of Islamic Banking in Nigeria . Annals of Borno, 26(1), 153-166. Retrieved from