COMPARATIVE STUDY OF IMPACT OF ENGLISH RECEIVED LAW ON ISLAMIC BANKING INSTITUTIONS IN MALAYSIA AND NIGERIA

Abstract

The British introduced the common law into their colonies and greatly dominated the
legal systems of the colonies and left marks that have persisted in the post-colonial
period. However, Malaysia has able to maintain its cultural value and the Shariah
not to be influence with the colonial master incorporated culture and law, while it is
quite different when compared it with what is happened in Nigeria. The paper
examines the reaction to the effects of British colonialism and the common law on the
judicial machinery for the administration of Islamic banking law and finance in post-
colonial Muslim-majority particular reference to Malaysia and Nigeria. The paper
discusses on the impact of the common law on the structure of Islamic banking legal
frameworks in the two jurisdictions. It is also stresses in the paper that through effort
of Malaysian government, the Malaysian Muslim scholars have attempted to resolve
some basic and operational issues in order to make Islamic banking products
operation more viable and acceptable by Shariah, the government separates the legal
framework guiding Islamic banking and finance from those existing conventional
legislations. As a result, there are comprehensive legislations for Islamic banking and
financial institutions in Malaysia when compared them with what is happened in
Nigeria are like chalk and cheese.