Bank of Ghana inaugurates Non-Interest Financial Advisory Council

The Bank of Ghana has inaugurated the five-member Non-Interest Financial Advisory Council (NIFAC) to oversee the implementation of the country’s non-interest banking sector. The council is led by Nigerian Islamic scholar Prof. Bashir Aliyu Umar, who brings experience from the Central Bank of Nigeria.

During the inauguration in Accra, Bank of Ghana Governor Dr. Johnson Pandit Asiama emphasized that non-interest products must adhere to strict standards of transparency, soundness, and consumer protection. He cautioned that products should not be accepted solely based on a non-interest label, noting that they must be properly assessed for risk, cost, and obligation. He clarified that non-interest finance operates through mechanisms such as trade, leasing, and asset-backed transactions rather than being “free finance.”

The council will advise the central bank on regulation and supervision while providing support to the Securities and Exchange Commission and the National Insurance Commission. This initiative aims to broaden financial inclusion by offering products that align with diverse values. The Bank of Ghana has indicated that at least one indigenous bank has applied for a license, with others in preparation, aiming for the first license issuance by the end of 2026.