By Yusuf Danjuma Yunusa

The Central Bank of Nigeria has warned non-interest financial institutions against governance and compliance risks capable of undermining public confidence and financial stability in the country’s growing Islamic finance sector.

The warning was contained in a statement issued by the apex bank on Monday following the 2nd Annual Interactive Session between the CBN Financial Regulation Advisory Council of Experts and the Advisory Committees of Experts of Non-Interest Financial Institutions held at the CBN Auditorium in Abuja.

Speaking through the Director of the Financial Policy and Regulation Department, Rita Sike, the Deputy Governor, Financial System Stability, Philip Ikeazor, said the rapid expansion of the industry had increased exposure to operational and regulatory vulnerabilities.

The statement read, “The Deputy Governor, however, observed that as the industry grows in size, sophistication, and interconnectedness, it faces unique risks, particularly non-compliance risk, governance challenges, operational vulnerabilities, and emerging technological risks.

“He warned that such risks, if not properly managed, could undermine public confidence, financial stability, and the overall credibility of the non-interest finance ecosystem.”

According to the CBN, the engagement was part of ongoing efforts to strengthen Shariah governance, improve regulatory clarity, and reinforce risk management standards within the non-interest financial services industry.

The apex bank noted that non-interest financial institutions continued to play an increasingly important role in Nigeria’s financial system by providing ethical and Shariah-compliant alternatives to conventional banking.

It stated that the institutions were also contributing to financial inclusion, real sector financing, micro, small and medium enterprises development, and shared prosperity.

The CBN further explained that the establishment of FRACE and the mandatory constitution of ACEs across all non-interest financial institutions were designed to institutionalise a harmonised governance framework for the sector.

According to the statement, sustained interaction between FRACE and ACEs remained critical to ensuring that regulatory expectations were properly understood and consistently implemented across the industry.

“The objectives of today’s session include fostering the institutionalisation and effective operation of a robust Shariah governance system within Non-Interest Financial Institutions, and providing a structured platform for dialogue, knowledge-sharing, and collaboration,” Ikeazor was quoted in the statement.

In his remarks, the Deputy Chairman of FRACE, Prof. Bashir Umar, said the interactive session was aimed at strengthening governance within the non-interest finance sub-sector and promoting constructive engagement between regulators and industry advisory committees.

He also commended the management of the CBN for reviving the session, which was first introduced in 2014.

Earlier in her welcome remarks, Sike reaffirmed the apex bank’s commitment to building a strong and well-governed non-interest financial services industry.

She noted that the growing diversity of products and delivery channels, particularly the emergence of Islamic fintech, had increased the need for stronger regulatory oversight and continuous engagement among industry stakeholders.

“The growing diversity of products, institutions, and delivery channels, particularly with the emergence of Islamic fintech, underscores the need for continuous dialogue, sound regulatory oversight, and robust advisory input from scholars and practitioners,” she said.

The session featured technical presentations on Shariah non-compliance risks in non-interest banks and the role of Islamic fintech in driving financial inclusion.

Participants at the event included members of FRACE, chairmen and members of various ACEs, managing directors of non-interest banks, senior CBN officials, and representatives of the Bank of Industry and the Securities and Exchange Commission.

By Yusuf Danjuma Yunusa

The fragile truce between the Federal Government and the Academic Staff Union of Universities (ASUU) appears to be unravelling. The union has issued a strong warning of a potential confrontation, accusing both federal and state authorities of a “flawed and partial” implementation of their December 2025 agreement.

The resolution followed ASUU’s National Executive Council (NEC) meeting, held at Modibbo Adama University in Yola.

In a statement issued after the meeting, ASUU President, Prof. Christopher Piwuna, expressed deep concern over what he described as the government’s reluctance to resolve several lingering disputes. These include the prolonged withholding of three and a half months of salaries, unpaid promotion arrears, salary shortfalls linked to the Integrated Payroll and Personnel Information System (IPPIS), unremitted third-party deductions, and outstanding arrears from the 25–35 per cent wage award.

Prof. Piwuna warned that the growing frustration among university lecturers—stemming from what he termed the government’s seeming indifference to their welfare—is fuelling pent-up anger that could erupt into a new wave of industrial unrest if left unaddressed.

“The union appeals to all genuine patriots, well-meaning Nigerians, and lovers of Nigeria to prevail on state and federal governments to fully implement the new agreement and resolve all outstanding issues in the interest of parents, students, and the nation at large,” Prof. Piwuna said.

He added, “Our union’s doors remain open for working with government to realise all our demands. At the same time, NEC has directed that an emergency meeting be convened in the next few weeks to review the situation and take appropriate action as may be necessary.”

The current tension was not unforeseen. In March 2025, reports had suggested that the relative peace in public universities could be short-lived unless a renegotiated agreement with the government was fully implemented.

That landmark accord, which stakeholders had hoped would end the 16-year deadlock over the original 2009 agreement, was scheduled to take effect on January 1, 2026. Key provisions included a 40 per cent salary increase for lecturers, improved pension benefits, and overhauled, duty-based Earned Academic Allowances aimed at fostering stability and reducing strike actions.

However, five months after the implementation date, full compliance remains elusive. While some universities have reportedly implemented aspects of the agreement, the Federal Government has yet to follow suit, raising the spectre of renewed nationwide university closures.

The Kano State Independent Students Consultative Forum has praised the administration of Abba Kabir Yusuf for what it described as “transformational achievements” in the education sector, saying the government has repositioned Kano as a national leader in educational development and academic performance.

Speaking during a press briefing at the Kano Press Centre, the Chairman of the Forum, Abubakar Sa’ad, said the administration’s investment in education between 2023 and 2026 has reversed years of neglect and restored confidence in the state’s public education system.

Addressing journalists, Sa’ad described the reforms as “the Abba Gida-Gida impact,” noting that the achievements were driven by “results, not rhetoric.”

According to him, one of the administration’s most significant achievements is its unprecedented financial commitment to education. He stated that while UNESCO recommends that governments allocate between 15 and 20 percent of their budgets to education, the Kano State Government consistently exceeded that benchmark by dedicating more than 30 percent annually to the sector.

He disclosed that in 2024, the state allocated 29.95 percent of its budget to education, while the 2026 budget earmarked over N400 billion — representing between 30 and 31 percent of total expenditure — for educational development.

Sa’ad also highlighted massive infrastructural expansion across the state, revealing that the government constructed mega primary schools and more than 1,000 classrooms across the 44 local government areas to tackle overcrowding and improve enrollment.

He added that boarding schools previously shut down by past administrations had been reopened, thereby restoring access to education for thousands of students, especially in rural communities.

The students’ leader further explained that the state government approved the renovation of primary and secondary schools and complemented the effort with the distribution of over 200,000 pieces of furniture, free uniforms, and writing materials to pupils from low-income families.

On tertiary education, the forum commended the reopening of rural higher institutions that had been closed in previous years, alongside ongoing infrastructure upgrades at Aliko Dangote University of Science and Technology and North West University.

Sa’ad noted that the government also inaugurated a 14-member committee in early 2025 to establish Gaya Polytechnic, aimed at expanding technical and vocational education opportunities for youths in the state.

The forum equally praised the administration for prioritizing student welfare through the removal of financial barriers to education.

According to Sa’ad, the government spent over N1.5 billion on the payment of WAEC and NECO examination fees for students, while also sponsoring 1,001 postgraduate students abroad for Master’s degree programmes with full tuition and allowances.

He added that the government approved N144 million for the distribution of free educational support materials to over 20,000 indigenous candidates preparing for the 2025 Unified Tertiary Matriculation Examination (UTME).

The chairman further stated that the administration introduced a 50 percent reduction in tuition fees across all state-owned tertiary institutions and rehabilitated school buses to support girls’ education and improve safe transportation to schools.

In strengthening the education workforce, Sa’ad disclosed that over 20,000 qualified teachers had been recruited by the government, alongside the regular supply of instructional materials to schools.

He also detailed a N5.5 billion education intervention package approved by the State Executive Council in 2025 for various projects, including debt settlements for boarding school feeding suppliers, renovation of Government Technical College Ungogo, procurement of office furniture for Northwest University Kano, accreditation exercises at Kano State Polytechnic, and the completion of an e-library at the Kano State College of Education and Preliminary Studies.

The forum also commended the government’s administrative reforms, particularly the merger of the Ministry of Higher Education with the Ministry of Education in March 2026 to improve coordination, eliminate duplication of responsibilities, and enhance policy implementation across all levels of learning.

Sa’ad stated that the reforms had already begun yielding measurable outcomes, pointing out that Kano emerged as the best-performing state in the 2025 NECO rankings, surpassing traditionally strong states such as Lagos State and Oyo State.

He further claimed that in the 2026 June/July Senior Secondary Certificate Examination, over 68,000 candidates from Kano obtained five credits and above, including Mathematics and English, maintaining the state’s leading academic position nationwide.

Despite the commendations, the forum acknowledged that challenges still exist in some schools, particularly in areas such as teacher-to-student ratios, water supply, and sanitation facilities.

However, Sa’ad expressed confidence that the administration remained committed to addressing the gaps through sustained investment and partnerships.

Beyond education, the students’ body declared its support for Governor Yusuf’s second-term ambition, arguing that the administration had demonstrated commitment to the welfare and advancement of students across the state.

The forum also condemned political violence and thuggery, warning that insecurity could undermine educational progress and social stability in Kano State.

“We categorically condemn any politician sponsoring thuggery or violence in Kano State. Education cannot thrive in an atmosphere of fear and insecurity,” Sa’ad stated, while urging security agencies to investigate and prosecute sponsors of violence without bias.

He concluded by saying that the administration had laid a solid educational foundation for future generations through strategic investments in infrastructure, teacher recruitment, scholarships, tuition reduction, and examination support.

According to him, Kano State is gradually reclaiming its historic position as a leader in Nigeria’s education sector through deliberate policies and sustained commitment to human capital development.