Nigeria is introducing Islamic banking to bring more of the nation's estimated 70 million Muslims into the economy. But many prominent Christian leaders say it will further inflame religious violence.
How it works
Islamic law prohibits paying or receiving interest or investing in businesses that provide goods or services that are contrary to Islamic principles.
That has led to the creation of interest-free, Islamic banking in more than 50 nations where customers share in profits and losses. In an Islamic mortgage, for example, the bank buys the house then resells it at a higher price, allowing the new homeowner to pay in installments.
Ziyad Muhammad of the Islamic Finance Institute of South Africa says Islamic banking is about creating wealth for the community.
“The ultimate objective is to ensure that anything that is introduced by the entrepreneur is done for the benefit of the community at large,” he said.
Muhammad took part in a Central Bank of Nigeria conference meant to counter Christian opposition to the introduction of Islamic banking.
Christian criticism
The Christian Association of Nigeria says the move violates the country's secular constitution and comes at a dangerous time when security forces are battling Islamic fundamentalists who are fighting for an independent nation ruled by Islamic law.
At the St. Peter Claver Catholic church, Father Paul Anyansi recognizes the potential economic benefits of Islamic banking but believes its dangers are far greater.
“We have too many religious tensions in terms of Islam against Christians. So it could stir up more. This is not the time for it," he said. "The policies for Islamic banking are good in the sense where there is no loan and interest. It doesn't go against the beliefs of the Islams. But what we are trying to say is that this country is not mature for it now.”
Father Anyansi says Christian leaders understand that Islamic banking works in other countries and might eventually work in Nigeria, but not right now.
“It could be as effective as it is England, as it is in America, as it is in Malaysia or countries where it is operated. But for now, we are still growing. A lot of people are not accepting their brother as their brother. They are not accepting the differences between religions. It will create more problems than more gains,” he said.
Secular vs Islamic
Human rights activist Oke Adheke says Nigeria can not run on both a secular system and an Islamic system.
“The moment they gave it a religious coloration it is not good for this country. Islamic banking by the name is not good for this country. Let them give us banking products that they believe are good for the ordinary man. The problem with this country is that we introduce too many funny things and tell stories about them, yet they don't work,” said Adheke.
Banker Solomon Osiobe says people are afraid of Islamic banking because it is new, but he believes it can help the economy if everyone understands its rules.
“Let's give it a chance because it has its advantages and disadvantages. If the rules are set out to be followed by the people who are to be served and there is public alertment, this banking system can go on,” he said.
Alternative
In this time of religious tension, Jaiz International Bank's Mohammed Mustapha Bintube says, Nigeria needs an alternate method of financing based on fairness, equity, and transparency.
“Islamic banks also, deliberately, we don't finance anything that is harmful to society. So we only look for projects that make positive impact in people's lives,” he said.
Nigeria's Conference of Islamic Organizations says opposition to Islamic banking is ignorant and insincere as it says some political leaders are trying to link Islamic financing to terrorism at a time when London and Paris are competing to be the center of Islamic banking.
The Christian Association of Nigeria says it will challenge the introduction of Islamic banking in court.
Showing posts with label Nigeria. Show all posts
Showing posts with label Nigeria. Show all posts
Friday, 15 July 2011
Islamic Banking Divides Nigerian Religious Leaders
Nigeria is introducing Islamic banking to bring more of the nation's estimated 70 million Muslims into the economy. But many prominent Christian leaders say it will further inflame religious violence.
How it works
Islamic law prohibits paying or receiving interest or investing in businesses that provide goods or services that are contrary to Islamic principles.
That has led to the creation of interest-free, Islamic banking in more than 50 nations where customers share in profits and losses. In an Islamic mortgage, for example, the bank buys the house then resells it at a higher price, allowing the new homeowner to pay in installments.
Ziyad Muhammad of the Islamic Finance Institute of South Africa says Islamic banking is about creating wealth for the community.
“The ultimate objective is to ensure that anything that is introduced by the entrepreneur is done for the benefit of the community at large,” he said.
Muhammad took part in a Central Bank of Nigeria conference meant to counter Christian opposition to the introduction of Islamic banking.
Christian criticism
The Christian Association of Nigeria says the move violates the country's secular constitution and comes at a dangerous time when security forces are battling Islamic fundamentalists who are fighting for an independent nation ruled by Islamic law.
At the St. Peter Claver Catholic church, Father Paul Anyansi recognizes the potential economic benefits of Islamic banking but believes its dangers are far greater.
“We have too many religious tensions in terms of Islam against Christians. So it could stir up more. This is not the time for it," he said. "The policies for Islamic banking are good in the sense where there is no loan and interest. It doesn't go against the beliefs of the Islams. But what we are trying to say is that this country is not mature for it now.”
Father Anyansi says Christian leaders understand that Islamic banking works in other countries and might eventually work in Nigeria, but not right now.
“It could be as effective as it is England, as it is in America, as it is in Malaysia or countries where it is operated. But for now, we are still growing. A lot of people are not accepting their brother as their brother. They are not accepting the differences between religions. It will create more problems than more gains,” he said.
Secular vs Islamic
Human rights activist Oke Adheke says Nigeria can not run on both a secular system and an Islamic system.
“The moment they gave it a religious coloration it is not good for this country. Islamic banking by the name is not good for this country. Let them give us banking products that they believe are good for the ordinary man. The problem with this country is that we introduce too many funny things and tell stories about them, yet they don't work,” said Adheke.
Banker Solomon Osiobe says people are afraid of Islamic banking because it is new, but he believes it can help the economy if everyone understands its rules.
“Let's give it a chance because it has its advantages and disadvantages. If the rules are set out to be followed by the people who are to be served and there is public alertment, this banking system can go on,” he said.
Alternative
In this time of religious tension, Jaiz International Bank's Mohammed Mustapha Bintube says, Nigeria needs an alternate method of financing based on fairness, equity, and transparency.
“Islamic banks also, deliberately, we don't finance anything that is harmful to society. So we only look for projects that make positive impact in people's lives,” he said.
Nigeria's Conference of Islamic Organizations says opposition to Islamic banking is ignorant and insincere as it says some political leaders are trying to link Islamic financing to terrorism at a time when London and Paris are competing to be the center of Islamic banking.
The Christian Association of Nigeria says it will challenge the introduction of Islamic banking in court.
How it works
Islamic law prohibits paying or receiving interest or investing in businesses that provide goods or services that are contrary to Islamic principles.
That has led to the creation of interest-free, Islamic banking in more than 50 nations where customers share in profits and losses. In an Islamic mortgage, for example, the bank buys the house then resells it at a higher price, allowing the new homeowner to pay in installments.
Ziyad Muhammad of the Islamic Finance Institute of South Africa says Islamic banking is about creating wealth for the community.
“The ultimate objective is to ensure that anything that is introduced by the entrepreneur is done for the benefit of the community at large,” he said.
Muhammad took part in a Central Bank of Nigeria conference meant to counter Christian opposition to the introduction of Islamic banking.
Christian criticism
The Christian Association of Nigeria says the move violates the country's secular constitution and comes at a dangerous time when security forces are battling Islamic fundamentalists who are fighting for an independent nation ruled by Islamic law.
At the St. Peter Claver Catholic church, Father Paul Anyansi recognizes the potential economic benefits of Islamic banking but believes its dangers are far greater.
“We have too many religious tensions in terms of Islam against Christians. So it could stir up more. This is not the time for it," he said. "The policies for Islamic banking are good in the sense where there is no loan and interest. It doesn't go against the beliefs of the Islams. But what we are trying to say is that this country is not mature for it now.”
Father Anyansi says Christian leaders understand that Islamic banking works in other countries and might eventually work in Nigeria, but not right now.
“It could be as effective as it is England, as it is in America, as it is in Malaysia or countries where it is operated. But for now, we are still growing. A lot of people are not accepting their brother as their brother. They are not accepting the differences between religions. It will create more problems than more gains,” he said.
Secular vs Islamic
Human rights activist Oke Adheke says Nigeria can not run on both a secular system and an Islamic system.
“The moment they gave it a religious coloration it is not good for this country. Islamic banking by the name is not good for this country. Let them give us banking products that they believe are good for the ordinary man. The problem with this country is that we introduce too many funny things and tell stories about them, yet they don't work,” said Adheke.
Banker Solomon Osiobe says people are afraid of Islamic banking because it is new, but he believes it can help the economy if everyone understands its rules.
“Let's give it a chance because it has its advantages and disadvantages. If the rules are set out to be followed by the people who are to be served and there is public alertment, this banking system can go on,” he said.
Alternative
In this time of religious tension, Jaiz International Bank's Mohammed Mustapha Bintube says, Nigeria needs an alternate method of financing based on fairness, equity, and transparency.
“Islamic banks also, deliberately, we don't finance anything that is harmful to society. So we only look for projects that make positive impact in people's lives,” he said.
Nigeria's Conference of Islamic Organizations says opposition to Islamic banking is ignorant and insincere as it says some political leaders are trying to link Islamic financing to terrorism at a time when London and Paris are competing to be the center of Islamic banking.
The Christian Association of Nigeria says it will challenge the introduction of Islamic banking in court.
Thursday, 14 July 2011
Nigerian Labor Leaders Call Strike Over Minimum Wage
Nigerian labor leaders are calling for a three-day general strike next week to protest failures to pay a new, national minimum wage.
Negotiations on a new minimum wage for Nigerians began more than two years ago with labor unions proposing as much as $340 a month. Lawmakers eventually settled on about $118 a month, or 18,000 Naira.
But nearly three months after that bill became law, few of the lowest paid workers in the public and private sectors are earning that wage.
"Those ones who are on the high side they are making it, but the masses are not making it," said Anne Elijah who works in a stationery shop in the Ikoyi neighborhood of Lagos. "There are so many people out there who are suffering. We still need the intervention of the government to make things perfect for us."
Elijah says many parents can no longer afford school fees, but are afraid to ask for more money because employers have an ample pool of job seekers from which to replace them.
"Year in, year out we still collect the same salary and things are not OK," added Elijah. "But they just leave it they way you collect [your salary] then you can't shout. If you say it, they will not answer you. They believe that if you don't want to work you can go. People are out there looking for jobs."
At the St. Peter Claver Catholic Church, Father Paul Anyansi says much of his congregation is just getting by.
"It's very, very important that we have a minimum wage that can cater for the basic needs of people in this country where there is a lot of inflation," added Anyansi. "Things like kerosene, basic things are getting out of hand. Rents are getting out of hand."
So labor leaders are calling a three-day general strike next week to force private sector employers as well as federal, state, and local governments to pay the legal minimum wage.
"I know Nigeria is not even among the poorest countries," said Ahmed Mai Sakala, chairman of the Nigerian Labor Congress for Gombe State. "But what we are in need of is committed leaders who will oversee the affairs of people in this country. And that is why we are in this case."
Lawmakers trying to avert the strike are calling for labor leaders to be patient. Sakala says all levels of government have had months to prepare for higher wage bills.
"The president of this country has signed it into law and yet even the federal government could not implement," added Sakala. "It is very unfortunate. The labor will stand and make everybody to follow the law of this land."
Some governors say they are already spending too much on petrol subsidies to pay a higher minimum wage.
"The governors who are saying that unless fuel is deregulated before they can pay they are only saying nonsense," said Akeem Kazeem, chairman of the Lagos State Council of the Trade Union Congress of Nigeria. "Because of the fact that this is the law. So anything short from 18,000 [Naira] minimum wage, it will not be taken."
Kazeem says the strike is meant to force private sector employers to comply with the law as well.
"Eighteen-thousand is minute from what is expected," Kazeem added. "And if they fail to implement, we will not hesitate to go on strike. The idea of private sector employing casual labor with 5,000 Naira is out of the way."
Even if the strike is successful, there are many Nigerians who will not earn the higher wage. Economists estimate that as much as 80 percent of people here in Lagos work in the informal economy. Registered businesses with fewer than 50 employees are exempt from the minimum wage requirement.
Negotiations on a new minimum wage for Nigerians began more than two years ago with labor unions proposing as much as $340 a month. Lawmakers eventually settled on about $118 a month, or 18,000 Naira.
But nearly three months after that bill became law, few of the lowest paid workers in the public and private sectors are earning that wage.
"Those ones who are on the high side they are making it, but the masses are not making it," said Anne Elijah who works in a stationery shop in the Ikoyi neighborhood of Lagos. "There are so many people out there who are suffering. We still need the intervention of the government to make things perfect for us."
Elijah says many parents can no longer afford school fees, but are afraid to ask for more money because employers have an ample pool of job seekers from which to replace them.
"Year in, year out we still collect the same salary and things are not OK," added Elijah. "But they just leave it they way you collect [your salary] then you can't shout. If you say it, they will not answer you. They believe that if you don't want to work you can go. People are out there looking for jobs."
At the St. Peter Claver Catholic Church, Father Paul Anyansi says much of his congregation is just getting by.
"It's very, very important that we have a minimum wage that can cater for the basic needs of people in this country where there is a lot of inflation," added Anyansi. "Things like kerosene, basic things are getting out of hand. Rents are getting out of hand."
So labor leaders are calling a three-day general strike next week to force private sector employers as well as federal, state, and local governments to pay the legal minimum wage.
"I know Nigeria is not even among the poorest countries," said Ahmed Mai Sakala, chairman of the Nigerian Labor Congress for Gombe State. "But what we are in need of is committed leaders who will oversee the affairs of people in this country. And that is why we are in this case."
Lawmakers trying to avert the strike are calling for labor leaders to be patient. Sakala says all levels of government have had months to prepare for higher wage bills.
"The president of this country has signed it into law and yet even the federal government could not implement," added Sakala. "It is very unfortunate. The labor will stand and make everybody to follow the law of this land."
Some governors say they are already spending too much on petrol subsidies to pay a higher minimum wage.
"The governors who are saying that unless fuel is deregulated before they can pay they are only saying nonsense," said Akeem Kazeem, chairman of the Lagos State Council of the Trade Union Congress of Nigeria. "Because of the fact that this is the law. So anything short from 18,000 [Naira] minimum wage, it will not be taken."
Kazeem says the strike is meant to force private sector employers to comply with the law as well.
"Eighteen-thousand is minute from what is expected," Kazeem added. "And if they fail to implement, we will not hesitate to go on strike. The idea of private sector employing casual labor with 5,000 Naira is out of the way."
Even if the strike is successful, there are many Nigerians who will not earn the higher wage. Economists estimate that as much as 80 percent of people here in Lagos work in the informal economy. Registered businesses with fewer than 50 employees are exempt from the minimum wage requirement.
Nigerian Labor Leaders Call Strike Over Minimum Wage
Nigerian labor leaders are calling for a three-day general strike next week to protest failures to pay a new, national minimum wage.
Negotiations on a new minimum wage for Nigerians began more than two years ago with labor unions proposing as much as $340 a month. Lawmakers eventually settled on about $118 a month, or 18,000 Naira.
But nearly three months after that bill became law, few of the lowest paid workers in the public and private sectors are earning that wage.
"Those ones who are on the high side they are making it, but the masses are not making it," said Anne Elijah who works in a stationery shop in the Ikoyi neighborhood of Lagos. "There are so many people out there who are suffering. We still need the intervention of the government to make things perfect for us."
Elijah says many parents can no longer afford school fees, but are afraid to ask for more money because employers have an ample pool of job seekers from which to replace them.
"Year in, year out we still collect the same salary and things are not OK," added Elijah. "But they just leave it they way you collect [your salary] then you can't shout. If you say it, they will not answer you. They believe that if you don't want to work you can go. People are out there looking for jobs."
At the St. Peter Claver Catholic Church, Father Paul Anyansi says much of his congregation is just getting by.
"It's very, very important that we have a minimum wage that can cater for the basic needs of people in this country where there is a lot of inflation," added Anyansi. "Things like kerosene, basic things are getting out of hand. Rents are getting out of hand."
So labor leaders are calling a three-day general strike next week to force private sector employers as well as federal, state, and local governments to pay the legal minimum wage.
"I know Nigeria is not even among the poorest countries," said Ahmed Mai Sakala, chairman of the Nigerian Labor Congress for Gombe State. "But what we are in need of is committed leaders who will oversee the affairs of people in this country. And that is why we are in this case."
Lawmakers trying to avert the strike are calling for labor leaders to be patient. Sakala says all levels of government have had months to prepare for higher wage bills.
"The president of this country has signed it into law and yet even the federal government could not implement," added Sakala. "It is very unfortunate. The labor will stand and make everybody to follow the law of this land."
Some governors say they are already spending too much on petrol subsidies to pay a higher minimum wage.
"The governors who are saying that unless fuel is deregulated before they can pay they are only saying nonsense," said Akeem Kazeem, chairman of the Lagos State Council of the Trade Union Congress of Nigeria. "Because of the fact that this is the law. So anything short from 18,000 [Naira] minimum wage, it will not be taken."
Kazeem says the strike is meant to force private sector employers to comply with the law as well.
"Eighteen-thousand is minute from what is expected," Kazeem added. "And if they fail to implement, we will not hesitate to go on strike. The idea of private sector employing casual labor with 5,000 Naira is out of the way."
Even if the strike is successful, there are many Nigerians who will not earn the higher wage. Economists estimate that as much as 80 percent of people here in Lagos work in the informal economy. Registered businesses with fewer than 50 employees are exempt from the minimum wage requirement.
Negotiations on a new minimum wage for Nigerians began more than two years ago with labor unions proposing as much as $340 a month. Lawmakers eventually settled on about $118 a month, or 18,000 Naira.
But nearly three months after that bill became law, few of the lowest paid workers in the public and private sectors are earning that wage.
"Those ones who are on the high side they are making it, but the masses are not making it," said Anne Elijah who works in a stationery shop in the Ikoyi neighborhood of Lagos. "There are so many people out there who are suffering. We still need the intervention of the government to make things perfect for us."
Elijah says many parents can no longer afford school fees, but are afraid to ask for more money because employers have an ample pool of job seekers from which to replace them.
"Year in, year out we still collect the same salary and things are not OK," added Elijah. "But they just leave it they way you collect [your salary] then you can't shout. If you say it, they will not answer you. They believe that if you don't want to work you can go. People are out there looking for jobs."
At the St. Peter Claver Catholic Church, Father Paul Anyansi says much of his congregation is just getting by.
"It's very, very important that we have a minimum wage that can cater for the basic needs of people in this country where there is a lot of inflation," added Anyansi. "Things like kerosene, basic things are getting out of hand. Rents are getting out of hand."
So labor leaders are calling a three-day general strike next week to force private sector employers as well as federal, state, and local governments to pay the legal minimum wage.
"I know Nigeria is not even among the poorest countries," said Ahmed Mai Sakala, chairman of the Nigerian Labor Congress for Gombe State. "But what we are in need of is committed leaders who will oversee the affairs of people in this country. And that is why we are in this case."
Lawmakers trying to avert the strike are calling for labor leaders to be patient. Sakala says all levels of government have had months to prepare for higher wage bills.
"The president of this country has signed it into law and yet even the federal government could not implement," added Sakala. "It is very unfortunate. The labor will stand and make everybody to follow the law of this land."
Some governors say they are already spending too much on petrol subsidies to pay a higher minimum wage.
"The governors who are saying that unless fuel is deregulated before they can pay they are only saying nonsense," said Akeem Kazeem, chairman of the Lagos State Council of the Trade Union Congress of Nigeria. "Because of the fact that this is the law. So anything short from 18,000 [Naira] minimum wage, it will not be taken."
Kazeem says the strike is meant to force private sector employers to comply with the law as well.
"Eighteen-thousand is minute from what is expected," Kazeem added. "And if they fail to implement, we will not hesitate to go on strike. The idea of private sector employing casual labor with 5,000 Naira is out of the way."
Even if the strike is successful, there are many Nigerians who will not earn the higher wage. Economists estimate that as much as 80 percent of people here in Lagos work in the informal economy. Registered businesses with fewer than 50 employees are exempt from the minimum wage requirement.
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