Challenges of Shariah Audit In Nigeria

Yıl 2025, Cilt: 3 Sayı: 1, 36 - 46, 30.08.2025

Lukmon Seriki

Öz

Shariah audit serves as an important governance mechanism within the Shariah governance system of Islamic banks. Its implementation remains challenging as it gives rise to the issue of dispute in its scope and the level of Shariah compliance with the practices and principles of Islamic banking. The Islamic Bank in Nigeria has witnessed a gradual growth with four full-fledged and a window Islamic bank. Key challenges undermining its efficacy in Nigeria are unclear frameworks, inadequate infrastructure, shortage of skilled personnel and inconsistent regulations. This research seeks to explore and address challenges facing in Shariah audit in Islamic banks in Nigeria. The aim of this paper is analyse the issues Shariah auditors encountered in Nigeria Islamic banks. This study adopts a qualitative methodology using focus group discussions of Shariah auditors form Islamic banks, regulators, and retired regulators officials. Findings from this study reveal significant gaps in the adoption and implementation of Shariah audit practices, including regulatory inconsistencies, limited technological integration, and a lack of clarity in operational guidelines. The research highlights the urgent need for a domesticated Shariah audit framework tailored to the Nigerian context, drawing lessons from global best practices while addressing local challenges.

Anahtar Kelimeler

Shariah Audit , Islamic Banking , Shariah Compliance , Nigeria , Regulators

Kaynakça

• Abd Rahman, N., Mastuki, N., Kasim, N., & Rahimi Osman, M. (2018). Risk Based Internal Shariah Audit Practices in the Islamic Bank. The Journal of Social Sciences Research, (Special Issue 5), 954–961.
• Accounting Auditing Organisation for Islamic Financial Institutions (AAOIFI) 2020. Governance Standards (GS) 11 Internal Shariah Audit.
• Alaro, A. A. (2013). Non Interest Banking and the Enabling Nigerian Laws: The Need for an Unprejudiced Assessment. Journal of International Banking Law and Regulation.
• Alaro, A. A. (2021). Islamic Financial Services: The Interplay of Religion, Law and Corporate Social Responsibility: Nigeria as a Case study. 196th Inaugural lecture, University of Ilorin Nigeria.
• Alaro, A. A., & Alao, I. A. E. (2019). Challenges of the Emerging Markets of Islamic Finance in Africa: Nigeria as a Case Study. Journal of Islamic Banking and Finance, 2(1).
• Algabry, L., Alhabshi, S.M., Soualhi, Y. & Abdullah Othman, A.H. (2020). Assessing the effectiveness of internal Shariah audit audit structure and its practices in Islamic financial institutions: A case study of Islamic banks in Yemen. Asian Journal of Accounting Research, 6(1), 2-22.
• Bahari, N. F., & Akhtar Baharudin, N. (2016). Shariah Governance Framework: The Roles Of Shariah Review And Shariah Auditing. Proceeding of the 3rd International Conference on Management & Muamalah 2016 (3rd ICoMM), 2016(November).
• Bambale, Y. Y. (2007) Islamic Law of Commercial and Industrial Transactions. (Lagos, Malthouse Press Limited.) Banks and Other Financial Institutions Act (BOFIA) Cap B3, Laws of the Federation of Nigeria (LFN) 2020.
• Basiruddin, R. and Ahmed, H. (2019), “Corporate governance and Sharīʿah noncompliant risk in Islamic banks: evidence from Southeast Asia”, Corporate Governance: The International Journal of Business in Society, Vol. 20 No. 2, pp. 240262.
• Central Bank of Nigeria (ED) Guidelines on Shariah Governance for Non-Interest Financial Institutions in Nigeria, 2009.
• Central Bank of Nigeria. (2023). Code of corporate governance for banks and other financial institutions in Nigeria.
• de Lange, P., Kostova, T., & Heugens, P. P. (2019). Doing business in a black box: On the opacity of private firms. Journal of World Business, 54(3), 207-219.
• Federal Republic of Nigeria. (2020). Companies and Allied Matters Act, 2020 (2020 No. 3). Federal Government Printer.
• Islamic Financial Services Board (IFSB). (2007). Guiding Principles of Risk Management for Institutions (Other Than Insurance Institutions) Offering Only Islamic Financial Services.
• Islamic Financial Services Board. (2025). IFSB global stability report 2025 . https://www.ifsb.org/publications. Lahsasna, A., Ibrahim, M. H., & Othman, R. (2013). Corporate governance and performance of Islamic banks: A comparative analysis between MENA and Southeast Asia. International Journal of Business and Society, 14(3), 369-382
• Marimuthu, M., & Ismail, K. N. I. K. (2016). Disclosure Practices of Shariah Compliant Companies in Malaysia. International Journal of Economics, Management and Accounting, 24(2), 151-174.
• Nawal Kasim, N. K. (2013). Emerging issues for auditing in Islamic Financial Institutions: Empirical evidence from Malaysia. IOSR Journal of Business and Management, 8(5), 10–17. https://doi.org/10.9790/487x-0851017
• Rohman, A. R. A. (2008). Shariah Audit for Islamic Financial Services: ISRA Islamic Finance Seminar.
• Shafii, Z., Abidin, A., & Salleh, S. (2015). Integrated Internal-External Shariah Audit Model: A Proposal towards the Enhancement of Shariah Assurance Practices in Islamic Financial Institutions. Journal of Islamic Economics, Banking and Finance, 7(4), 597610.
• Shafii, Z., Salleh, S., Hanefah, H. M. M., & Jusoff, K. (2013). Human capital development in Shariah audit. Middle East Journal of Scientific Research.
• The Institute of Internal Auditors. (2017). Implementation guidance for the International Professional Practices Framework (IPPF) (pp. 1–181)
• Uche, C. (2010). Indigenous Banks in Colonial Nigeria, The International Journal of African Historical Studies, Vol. 43, No. 3 (2010),
• Yahya, Y. (2016). Shariah Audit in Islamic Financial Institutions: The effects of Spirituality and Moderating role on judgment and decision making. Institute of Postgraduate studies University of Malaya. Kuala Lumpur.
• Zurina, K., Marhanum, M., & Nazli, A. M. (2019). Shariah Audit Practices and Challenges: Evidence from Malaysia. In 3rd International Conference on Accounting, Business and Economics (ICABEC) 2019. Atlantis Press.