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Reaffirms Commitment to Stronger Shariah Governance in Non-Interest Finance Sector

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BY NKECHI NAECHE-ESEZOBOR—The Central Bank of Nigeria (CBN) has reaffirmed its commitment to strengthening Shariah governance, regulatory clarity, and risk management within the non-interest financial services industry as part of ongoing efforts to sustain financial stability, public confidence, and the orderly growth of the sector.

The commitment was reiterated during the 2nd Annual Interactive Session between the CBN Financial Regulation Advisory Council of Experts (FRACE) and the Advisory Committees of Experts (ACE) of Non-Interest Financial Institutions (NIFIs), held on Thursday, May 7, 2026, at the CBN Auditorium in Abuja.

Speaking on behalf of the Deputy Governor, Financial System Stability, Mr. Philip Ikeazor, the Director of the Financial Policy and Regulation Department, Dr. Rita Ijeoma Sike, described the session as a strategic platform designed to deepen the credibility, resilience, and soundness of Nigeria’s non-interest financial services industry.

According to Mr. Ikeazor, the engagement builds on the achievements of the inaugural session and reflects the CBN’s continued resolve to maintain a sound, credible, and resilient non-interest financial system driven by robust governance, effective compliance, and prudent risk management practices.

He noted that Non-Interest Financial Institutions have become increasingly important in Nigeria’s financial system by offering ethical and Shariah-compliant alternatives to conventional banking. He added that the institutions are making significant contributions to financial inclusion, real sector financing, Micro, Small and Medium Enterprises (MSMEs) development, and shared economic prosperity.

However, the Deputy Governor cautioned that the sector’s rapid growth, increasing sophistication, and expanding interconnectedness also expose it to unique challenges. These include Shariah non-compliance risks, governance concerns, operational vulnerabilities, and emerging technological threats, all of which could undermine public confidence and the credibility of the industry if not effectively managed.

He explained that the establishment of FRACE and the mandatory constitution of ACEs across all NIFIs were aimed at institutionalising a harmonised and resilient governance framework for the sector. He stressed that continuous engagement between FRACE and ACEs remains critical in ensuring that regulatory expectations are properly understood and consistently implemented.

“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 remarks, the Deputy Chairman of FRACE, Prof. Bashir Aliyu Umar, said the interactive session was organised to strengthen governance within the sub-sector and encourage constructive engagement between FRACE and the ACEs of NIFIs. He commended the CBN for reviving the initiative, which was first introduced in 2014.

The session featured technical presentations on “Shariah Non-Compliance Risk in Non-Interest Banks and its Impact on the Non-Interest Financial Services Industry” and “Islamic Fintech and Financial Inclusion.” Participants also engaged in discussions on governance, innovation, risk mitigation, and capacity building in the non-interest finance sector.

The post Reaffirms Commitment to Stronger Shariah Governance in Non-Interest Finance Sector appeared first on Business Today NG.

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Police Arrest 24-Year-Old Suspected of Conveying Illegal Firearms in Lagos

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As part of its sustained efforts to combat illegal possession and trafficking of firearms, and other criminal activities across the State, operatives of the Command have arrested one Lukman Sanni, ‘m’, 24 years, suspected of conveying illegal firearms, during a stop-and-search operation at Iyana Isashi, Lagos State.

A search conducted on him led to the recovery of a locally made pistol, two (2) live cartridges and a suspected charm. Preliminary investigations are ongoing to establish the circumstances surrounding the possession and intended delivery of the recovered firearm and ammunition. The suspect is currently in custody and is providing useful information to aid the investigation.

The Commissioner of Police, Lagos State Command, CP Tijani Fatai, psc, mnips, reiterated the Command’s commitment to combating illegal firearms possession, arms trafficking, cultism and other criminal activities across the State. He urged residents to remain vigilant and promptly report suspicious activities to the Police, noting that credible information from the public remains vital to maintaining peace and security.

The post Police Arrest 24-Year-Old Suspected of Conveying Illegal Firearms in Lagos appeared first on Business Today NG.

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Oyedele seeks lasting rules to safeguard Nigeria’s economic reforms

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The federal government is considering legislation to prevent successive administrations from reversing key economic reforms, as it seeks to establish a national policy framework to guide decisions on taxation, subsidies, trade and industrial development.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the proposed framework would establish economic principles to guide successive governments, regardless of changes in political leadership.

He spoke on Monday at the 32nd Nigerian Economic Summit in Abuja, where he presented the draft of Nigeria Economic Policy Framework for public consultation.

“We now need to lock it in, in institutions, in law, as well as policy framework, so that it can be enduring,” he said during a panel session.

The proposal comes as President Bola Tinubu’s administration continues to defend its economic reforms, including the removal of petrol subsidies and changes to the foreign exchange system.

The government says the reforms are necessary to address economic distortions and improve long-term stability. However, their effects on household purchasing power and business costs have remained a subject of public debate.

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Mr Oyedele said inconsistent economic policies had discouraged investment and undermined previous reforms, arguing that Nigeria needed a lasting approach to economic decision-making.

“Policy uncertainty is an invisible tax on enterprise. And unlike most taxes, it generates no revenue for government; it only destroys value and discourages investment,” he said.

He said the government was considering whether key provisions of the proposed framework should be backed by law, stressing that the document remained a draft and had not been approved as government policy.

Public consultation

According to Mr Oyedele, the consultation process will run until 27 November, after which the framework is expected to proceed to the Federal Executive Council for approval and the National Economic Council for endorsement.

The draft is built around stability, productivity, enterprise, capital, people, markets and institutions. It proposes common principles to guide economic decisions across government.

One of its key proposals is to require Policy Impact Assessments before major economic interventions. These assessments would set out the problem a proposed measure seeks to address, the evidence supporting it, its likely costs and beneficiaries, and the conditions under which it should end.

The assessments would cover interventions such as tax changes, tariff adjustments, regulatory restrictions and incentives.

The framework also proposes an annual National Economic Scorecard to measure whether economic growth is improving living conditions. Suggested indicators include real wages, productive employment and poverty levels.

The government says these measures would make economic decisions more transparent and allow Nigerians to assess policies by their outcomes rather than announcements alone.

The Ministry of Finance has published the consultation document on its website and invited businesses, professional groups, researchers and other stakeholders to submit recommendations.

No return to fuel subsidy

Mr Oyedele defended the removal of petrol subsidies, saying the artificial suppression of prices had distorted the economy and created costs that became increasingly difficult to manage.

He argued that government policy should focus on raising household incomes rather than keeping prices below levels that could be sustained by the market.

“Let’s not suppress prices. Let’s focus on raising income,” he said.

The minister also questioned Nigeria’s industrial protection policies, citing locally assembled vehicles that he said contained only about five per cent local content despite benefiting from tariffs and levies of up to 60 per cent.

He argued that protection for domestic industries should be temporary and tied to measurable performance, rather than shielding businesses indefinitely from competition. He also called for improvements in electricity supply, logistics and other infrastructure to lower production costs.

Mr Oyedele said the government was targeting inflation in the low single digits before the end of 2027, with the aim of creating conditions for single-digit interest rates. He did not provide a specific timeline for achieving lower borrowing costs.

He also cited student loans, pension payments, wage adjustments and subsidised credit for small businesses as interventions under the government’s broader economic programme.

He urged wealthy Nigerians to meet their tax obligations, warning that inadequate government revenue could worsen inflation, borrowing costs and pressure on the naira.

Tinubu administration defends reforms

The Minister of Budget and Economic Planning, Abubakar Bagudu, backed the call for policy consistency, saying President Tinubu had directed government officials to sustain the reforms despite concerns about their immediate effects on households.

“There will be no return to subsidy. There will be no return to those distortions,” Mr Bagudu said.

He said the Federal Government had reached agreements with state governments on better coordination of fiscal and monetary policies, infrastructure development, security and domestic production.

Mr Bagudu also said more than $6 billion had been mobilised from the World Bank and other development partners to support household resilience and economic opportunities.

Anambra State Governor, Charles Soludo, cautioned against abandoning macroeconomic stability, saying sustained policy discipline was necessary to achieve meaningful growth.

“The macroeconomic framework, the stability that is back, must never be taken for granted,” he said.

However, Mr Soludo argued that economic growth of about four per cent remained insufficient to deliver rapid poverty reduction and create enough jobs, calling for higher investment and faster expansion.

Calls for stronger productivity

Oxford University Professor of Economic Policy, Stefan Dercon, stressed the importance of controlling inflation and improving electricity supply, logistics and port operations to support economic growth.

He cautioned against indefinite protection for domestic industries.

“You can’t keep on protecting in the same way,” he said.

Chema Triki, co-founder and managing director of Growth Teams, said Nigeria needed to develop new productive capabilities and diversify exports rather than depend excessively on its domestic market.

She pointed to the country’s limited export diversification as a reason for strengthening industrial competitiveness.

READ ALSO: What African countries, others can learn from Nigeria’s economic reforms – Minister

Omoboyede Olusanya, group managing director of Flour Mills of Nigeria, called for lower interest rates, reliable infrastructure and improved agricultural productivity to reduce manufacturing costs.

He said expensive financing discouraged long-term investment, while poor logistics and unstable supplies of agricultural commodities weakened domestic industries.

Lagos State Governor, Babajide Sanwo-Olu, highlighted investments in ports, transport corridors, rail infrastructure and food logistics as measures to improve productivity and reduce the cost of doing business.

The Chairman of the Nigerian Economic Summit Group, Olaniyi Yusuf, urged the government to ensure that economic reforms translated into affordable living costs, productive employment and measurable improvements in household welfare.

The Minister of State for Budget and Economic Planning, Doris Uzoka-Anite, said the National Development Plan 2026–2030 would prioritise industrialisation, infrastructure, investment mobilisation, human capital development and stronger institutions.

She said the plan aimed to accelerate economic growth, create jobs and reduce poverty through better coordination of government policies, budgets and investment programmes.

The proposed Nigeria Economic Policy Framework is expected to undergo further consultation before formal consideration by the relevant government institutions.


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