Islamic Banking in Nigeria Fraught with Problems

Nigeria has become a battleground for Islamic finance, further dividing Africa's most populated country. Nigeria is one of the world's largest oil producers. The country has a history of bitter civil wars fought on ethnic and religious lines.

Nigeria, the seventh most populous country in the world has some 70 million Muslims. In order to capitalize on the growing popularity of one of the world's fastest-growing financial sectors, the Central Bank of Nigeria has introduced Islamic banking into the country.

CNN's Christian Purefoy discussed the sector's potential with Hajara Adeola, managing director of Lotus Capital, one of the groups helping to pave the way for Islamic finance in Nigeria.

Adeola says there is a growing appetite for this form of banking.

"It is working in Nigeria and there is a lot of interest in doing Islamic banking, in West Africa in particular," she says.

Spread across the Middle East and other parts of the world, a slew of Islamic financial institutions have been offering interest-free services that advocates say can provide a more sustainable alternative to conventional banking practices.

The industry, which exists in more than 50 countries, is estimated to be worth around $1 trillion and has the potential to eventually be worth $5 trillion, according to ratings agency Moody's. The full article.