Ethical finance based on the core principles of fairness and social justice.


Non-interest finance works on a profit sharing basis, where profits derived from permissible transactions are shared amongst the depositors and the bank’s shareholders

  • Is Non-interest banking meant for Muslims only?

    No. Non-interest banking is for all individuals regardless of their religious beliefs. 

    Non-Interest banking is an alternative form of banking open for everyone in Nigeria irrespective of their religion. The basic principles of non-interest banking and finance as highlighted earlier are appealing to many people. Many of these universal principles are shared amongst people from various faith traditions. Values like justice, mutual help and honesty on the part of the parties to a contract, avoiding misrepresentation or misstatement of facts and avoiding unethical practices such as price manipulation, bribery or exploitation are sought by all people in society.

    Many people in the world from varying religious backgrounds and those of no faith are seeking a fairer and more inclusive economic system. They have spoken out about the dangers of interest and in support of the principles underlying non-interest banking and finance.

  • What are the differences between Non-interest and conventional banking?

    The most important difference between Non-interest and conventional banking is that Non-interest banking prohibits the acceptance or payment of interest. Non-interest also promotes risk sharing. Finally all profit must be earned on assets

  • How do Non-interest banks and Non-interest Banking Scheme (NIBS) banks reward their depositors since payment of interest is not allowed?

    There are many ways to share profit or returns between a bank and its customers. For example, in a deposit product, profits from a deposit arrangement will be shared between a bank and its depositors based on an agreed ratio and paid as dividends. 

  • The end result of Non-interest finance and Conventional Banking sometimes appear the same. Why do they appear similar?

    The validity of a transaction does not depend on the end result but rather the process and activities executed and the sequence thereof in reaching the end. To be considered as non-interest financing, the transactions must be done according to the rules of non-interest banking and finance even if the end result of the product may look similar to conventional banking product.

  • If non-interest banks do not invest in interest based activities then how do they generate profit to pay to their customers?

    The non-interest banks use their funds in various trade, investment and service with related Shariah compliant activities and earns profit thereupon. The profit earned from such activities is passed on to the depositors according to the agreed terms.

  • Are not non-interest banks just paying interest and dressing it as profit on trade and investments?

    No, non-interest banks accept the deposits either on profit and loss sharing basis or on Qard basis. These deposits are deployed in financing, trading or investment activities by using the Shariah compliant modes of finance. The profit so earned by the bank is passed on to the depositors according to the pre-agreed ratio which, therefore, cannot be termed as interest.