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Business News of Wednesday, 13 October 2021

Source: ripplesnigeria.com

CBN releases guidelines on how income not allowed in Shari’ah is disposed

CBN CBN

The Central Bank of Nigeria (CBN) has issued a guideline to Non-Interest Financial Institutions (NIFIS) on the disposal of Non-Permissible Income (NPI).

NPI is any income that accrues to the institution in a Shari’ah noncompliant manner, such as interest income, penalties for delayed payment of debt obligations, or any income declared by the ACE of the institution as impermissible according to the Shari’ah.

The guidelines issued on Wednesday was specifically directed to the Advisory Committees of Experts (ACE) of the Non-Interest Banks (NIB).

The ACE are In charge of supervising and monitoring of the disposal of NPI.

The guildines read: “NPI is not an object of ownership of the NIB and does not confer any ownership rights on it.

“The NPI shall be put in a dedicated NPI account and shall not be commingled with the funds of the NIB.