“By using-or abusing- the term ‘failed bank’ we are able to mask what is almost always a monumental fraud. But it is a deliberate act of prestidigitation.”- Sanusi Lamido Sanusi
Sanusi Lamido Sanusi is outspoken by central banker standards; the quote above comes from a university convocation lecture in Nigeria in 2010 (PDF). The consensus opinion is that his ousting last month was a politically motivated result of his anti-corruption drive in Nigeria. His time at the Nigerian central bank—he was appointed in 2009 as the Nigerian banking system was on the verge of collapse—not only coincided with the stabilization of the banking system, but also the first tenuous steps towards allowing Islamic banking in Nigeria.
In the same speech where he lamented the use of ‗failed bank‘, he said that ―it should be possible to have international, national, regional, mono-line and specialised banks such as Islamic banks in the country.
The first Islamic bank, Jaiz Bank, opened in 2012 and South Africa-based Standard Bank operates an Islamic window in Nigeria. On the capital markets side, the state of Osun issued the first Nigerian sukuk and other banks have expressed interest in Nigeria for expansion of their Islamic banking franchises.