EFFECT OF SHARI'AH REVIEW AND FATAWA ON PRODUCT DEVELOPMENT OF NON INTEREST FINANCIAL INSTITUTIONS IN NIGERIA

The objective of the study is to evaluate the effect of Shari'ah Review and Fatawa on product development of Islamic banks in Nigeria. The data is survey in nature while primary data was employed using questionnaires to collect data. Multiple regression was used as a tool of analysis. It was found that Shari'ah review significantly affects product development positively. This implies that the more Shari'ah review is conducted the better the product development process. Fatawa on the other hand has a positive but not significant effect on product development in this study. This implies that asignificant impact could be anticipated in the long-run based on improved method of issuing fatawa during product development of NIFIs in Nigeria. It is therefore recommended that Shari'ah review should be upheld by Shari'ah advisors while increasing tight controls so that economic objectives do not overshadow Shariah compliance. The process of issuing fatawa on the other hand should be revisited by scholars to harmonise the way fatawas are issued while Advisory Committee of Experts (ACE) should ensure that products maintain the form, essence, spirit and implications of Shari'ah before issuing fatawa since fatawa is indispensable.