Tunde Bakare
The House of Representatives on Thursday, December 10, mandated its Committee on Banking and Currency; to investigate how beneficial it is for the country to adopt non-interest banking system.
This was sequel to an amendment raised by Rep. Ndudi Elumelu (PDP-Delta); while the House was debating a motion on the need to adopt a non-interest banking system sponsored by Rep. Kabir Tukura (APC-Kebbi) at plenary.
Moving the motion, Tukura said that the non–interest banking; also known as Profit and Loss Sharing (PLS) banking system prohibited payment of interest in all ramifications.
According to him, the system adopts the principle of profit and loss sharing between the parties.
Tukura explained that under non–interest banking system; both the investor and the entrepreneur were seen as partners.
He further explained to the Reps that when profits or losses were made; they will be shared based on the level of financial participation.