The Regulatory Challenges Facing Islamic Banking: An Empirical Analysis from Ilorin, Nigeria

Abstract

This paper addresses the regulatory challenges facing Islamic banking in Nigeria with a view to streamlining the system’s legal framework. An empirical method is adopted, with research being carried out using 150 respondents in Ilorin, Nigeria. The paper found that the challenges facing Islamic banking in Nigeria have had an overall negative effect on that sector’s operation. The study concludes that, if the challenges are not addressed, Islamic banking will suffer setbacks in Nigeria. The paper recommends a regulatory framework for Islamic banking in Nigeria.