THE ROLE OF REGULATORY SECTORS IN ENSURING THE OPERATION OF ISLAMIC BANKING AND FINANCE SYSTEM IN NIGERIA

Abstract

Despite enormous opportunities for social development and economic harmony in Islamic banking, Nigeria’s Islamic banking sector accounts for merely 1.7 percent of the entire banking industry. The regulatory sectors play a crucial role in promoting the Islamic banking and financial system in the country. Applying the doctrinal research method, this study examines the role of government of Nigeria’s regulatory sectors play in ensuring the operation and growth of Islamic banking and finance. It explores and analyses the legal frameworks, policies, and initiatives implemented by the regulatory sectors to address and promote the non-interest bank in the country. It sight-sees the related opportunities and risks attached in operation of Islamic banks. The study highlights the importance of integrating change considerations into Islamic financial decision-making, promoting sustainable Islamic finance, and improving communities’ income and economy initiatives. The findings of this study provide insights into the challenges and opportunities faced by the regulatory sectors in addressing Islamic banking and finance change in the financial sector and offer recommendations for policymakers and regulators.