Islamic Home Financing In Nigeria

There is urgent need to finance affordable housing, especially in Nigeria. As of 2015, the number of Muslims stands over 80 million. This emphasises the need for Shari'ah compliant home financing to suit the demands of their faith. The immutable principles of Islamic commercial transaction that prohibit riba and gharar has drawn up a sharp distinction between the concepts of Islamic and conventional home financing. Nonetheless, despite the establishment of Islamic banking in Nigeria and the willingness of Muslims to embrace it, home financing in Nigeria remains largely conventional. Drawing on a review of literature on Islamic finance in Nigeria, this paper examines factors that may hinder the implementation of Islamic home financing in Nigeria. The study revealed that low level of awareness, lack of long-term financing, religious and cultural disparity, and an unfavourable framework are main factors hindering the adoption of Islamic home financing in Nigeria.