ISLAMIC BANKING SYSTEM IN NIGERIA: A STUDY ON THE IMPACT OF THE ACTIVITIES OF JAIZ BANK IN GOMBE STATE

Abstract

Abstract With the recent efforts in the Islamization of knowledge, Islamic scholars, stakeholders and academicians have in mass concentrated in describing the principles of Islamic banking and its operations. In Nigeria and Gombe in particular, the introduction of Jaiz Bank is a great gain to Islam and its call for the abolishing of interest (Riba) in all economic-based activities of the Muslims and the establishment of contracts based on profit and loss sharing formula. This study explores the Islamic banking system in Nigeria focusing on the impact of the activities of Jaiz Bank in Gombe State. Therefore, the study assesses the implications of these activities on people vis-a-vis their efforts in the transformation of the conventional banking system to the Shari’ah-copliance system. The study concludes that the recent ethical Islamic banking system possess the tremendous potentialities as an alternative mechanism in solving the contemporary financial issues which the so-called traditional banking system failed to address in previous decades.