Nigeria Issues Guidelines for Disposal of Non-Permissible Income of Non-Interest Financial Institutions

Guidelines have been issued by the Central Bank of Nigeria (CBN) to non-interest financial institutions (NIFI) in the country on disposal of non-permissible income (NPI) according to a circular dated the 13th of October 2021.

Why it Matters?

The circular defines non-permissible income as income that accrues to the institution in a Shariah non-compliant manner such as interest income, penalties for delayed payment of debt obligations or any other income declared by the Advisory Committee of Experts (ACE) of the institution as impermissible as per Shariah laws. The guidelines in the circular were issued to ACE of Non-Interest Banks (NIB) to supervise and monitor the disposal of NPI in their institutions. The important points to note in the guidelines inc...