The Central Bank of Nigeria has reaffirmed the strategic importance of Non-Interest Financial Institutions (NIFIs) in driving Nigeria’s economic growth, noting that the sector continues to provide ethical alternatives to conventional finance.
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, the apex bank restated its commitment to strengthening Shariah governance, regulatory clarity, and risk management across the non-interest financial services industry.
Speaking at the event, Deputy Governor, Financial System Stability, Philip Ikeazor described the meeting as a strategic platform for deepening the credibility, resilience, and soundness of the non-interest financial sector.
He said the engagement builds on the foundation laid during the inaugural session and reflects the bank’s commitment to sustaining a credible and resilient non-interest financial system anchored on strong governance, effective compliance, and prudent risk management.
Ikeazor, however, warned that as the industry expands in size and sophistication, it faces risks including non-compliance, governance challenges, operational vulnerabilities, and emerging technological threats.
According to him, failure to properly manage these risks could weaken public confidence, threaten financial stability, and undermine the 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, while also providing a platform for dialogue, knowledge-sharing, and collaboration,” he said.
In his remarks, the Deputy Chairman of FRACE, Bashir Aliyu Umar said the session was designed to strengthen governance in the sub-sector and encourage constructive engagement between FRACE and the ACEs of NIFIs. He also commended the CBN for reviving the interactive session first introduced in 2014.
Earlier, Director of the Financial Policy and Regulation Department, Rita Ijeoma Sike reaffirmed the bank’s commitment to promoting a strong and well-governed non-interest financial services industry.
She noted that the growing diversity of products, institutions, and delivery channels, especially with the rise of Islamic fintech, highlights the need for continuous dialogue, sound regulatory oversight, and strong advisory support from scholars and industry practitioners.
