Professional Analysis of Islamic Law Application in the Nigerian Financial Regulatory Framework: CBN Guidelines and Sharia Compliance

The Central Bank of Nigeria has issued a series of regulatory guidelines governing Islamic banking and finance operations, including the Framework for Non-Interest Financial Institutions and the Guidance Notes on Non-Interest Windows, which establish the regulatory parameters for Sharia-compliant financial services in Nigeria. This study conducts a professional analysis of the alignment between CBN Islamic finance regulatory guidelines and established Islamic jurisprudential standards for financial transactions. A professional regulatory and legal analysis is applied, comparing CBN NIFI Framework provisions with AAOIFI Sharia Standards, IFSB guidelines, and the jurisprudential positions of the Sharia Advisory Councils of prominent Gulf Cooperation Council central banks. Structured interviews with twelve Islamic banking practitioners, eight CBN regulatory officials, and six Islamic finance scholars complement the documentary analysis. The study evaluates the Sharia governance requirements for non-interest financial institutions, the CBN's provisions on Sharia advisory board composition, and the treatment of Islamic capital market instruments under Nigerian securities regulation. Available professional Islamic finance literature from Nigeria identifies the CBN framework as broadly Sharia-compliant in design while lacking sufficient detail on Sharia supervisory enforcement mechanisms. The AAOIFI Governance Standards for Islamic Financial Institutions and the CBN NIFI Framework 2011 and its 2020 updates provide the analytical reference. Findings are expected to reveal regulatory adequacy alongside implementation gaps. Recommendations address enhanced Sharia supervisory board independence requirements, mandatory Sharia compliance audit standards, and clearer CBN guidance on contested product structures. Keywords: CBN regulation, Islamic banking, Sharia compliance, non-interest finance, Nigeria.