Manpower Challenge of Non-Interest Banking Framework in Nigeria

Abstract

The release of the framework for the regulation and supervision of Non-Interest Banks (NIBs) in Nigeria in 2011 after four decades of consecutive and concerted effort to establish Islamic banks without success has posed to various stakeholders a serious challenge of manpower development in view of the observed acute shortage of skilled and well trained personnel that is knowledgeable about Islamic banking, particularly the reporting procedures of Islamic Banks (IBs). Using literature survey and responses from group interviews conducted with 120 conveniently sampled certified Accounting professionals and 200 postgraduate students working in conventional banks in Nigeria, this paper examines the manpower challenge of the NIB framework to both the regulator and operators in the country. The paper confirms that at the moment, most Muslim accountants and bankers in Nigeria are not conversant with the modus operandi of Islamic banks, particularly the reporting aspects. The paper therefore recommends that Central Bank of Nigeria (CBN), bank operators and accounting professional bodies should collaborate to train their staff/members on Islamic banking processes and procedure to enable banks wishing to provide non-interest banking in Nigeria comply with the various provisions of the framework.