Shariah Compliance Practice: An Analysis of Trends among Islamic Banks in Nigeria

Abstract

The objective of this study is to examine the trends related to the Shariah compliance practice among Islamic banks in Nigeria. It is also conducted to establish the loopholes in the existing Islamic banking system and to suggest measures to remove Shariah non-compliance in Islamic banks in Nigeria. The study is based on primary data. The data was gathered through a questionnaire survey with the employees, researchers, and Islamic banking experts. The study is based on descriptive findings by analysis of mean, standard deviation, and variance to examine the trends of Shariah compliance practice in Islamic banks in Nigeria. The study found that Islamic banks in Nigeria are doing well in terms of Shariah compliance practice relating to their products and services. Besides, the advisory committee of experts are quite knowledgeable in determining fatwa and rulings in all Islamic banking matters in Nigeria. This is because Shariah compliance is considered as the backbone of Islamic banking as it gives legitimacy to their products and services. The study has implications for all the banks, customers, Shariah Advisory Committee, regulatory bodies, and other stakeholders in Nigeria to further checkmate the various factors that could prevent Shariah non-compliance. The study, therefore, recommends extensive efforts via Shariah knowledge and seriousness of the bank employees as well as regulatory authorities to enforce Shariah compliance thereby guiding customers to choose Islamic banking products in a better and improved way.