Regulatory And Supervisory Shariah Governance Of Islamic Banking System: Comparative Analysis Of Malaysia And Nigeria

ABSTRACT Purpose: The purpose of the study is to examine shariah governance system in terms of regulatory and supervision of Nigerian Islamic banking system for its establishment and operation. The study compares Malaysia and Nigeria in terms of their shariah governance practices. It suggests way forward for the development and smooth running of the system in Nigeria based on Malaysian experience Methodology: The study employs qualitative approach making use of both the in-depth field interview with shariah scholars, regulatory officers, practitioners, academicians who are directly involved in the operations of Islamic banking system in two countries Malaysia and Nigeria. And secondary source inform of documentary review is also employed. Findings: From the findings of this study, in terms of basic minimum things, most, but not all of the situations regarding  shariah governance, in Nigeria are in line with footsteps of Malaysia. Thus, lots need to be done. The regulators should bear it in mind that in terms of  shariah governance framework what they are have done are just the basic minimum required for the start, they should be prepared  and ready for the comprehensive effective and efficient frameworks for the industry. Practical Implication/ Value of the Study: The study will have policy implication to the CBN and other stakeholders in the area of Islamic banking system. Findings of this study will be a source of reference for Nigeria and other countries in formulating the similar concept of Islamic banking system because it provides gap which needs to be filled in order to make the system a success.