A federal High Court in the Federal Capital Territory (FCT), presided over by Justice Gabriel Kolawole, has declared the non-interest financial institution operating under the principles of Islamic jurisprudence as illegal and unconstitutional. Justice Kolawole Friday held that but for the plaintiff, Godwin Sunday Ogboji, who, he said, lacked the locus standi to institute the action, the licence issued to the Jaiz International Bank PLC to carry out Islamic banking in the country would have been nullified. "There are no provisions in the CBN Act and the Banks and other Financial Institutions Act (BOFIA) that empowers the CBN Governor, Sanusi Lamido Sanusi, to issue licence for non-interest financial institution to operate under the principles of Islamic jurisprudence without the approval of the Head of State through the minister of Finance. "Unlike the other specialised banks, the Jaiz International Bank PLC can only be established in the country with the intervention of the National Assembly by amending the BOFI Act. "If not that the plaintiff has no locus standi to maintain this action, I would have nullified the illegal licence issued to the Jaiz International Bank PLC by the CBN to operate non-interest banking under the principles of Islamic jurisprudence. "This case is hereby struck out for lack of locus standi, but the AGF should take steps to remedy the situation and further ensure that the CBN carries out its duties within the provisions of the law establishing it." Ogboji had asked the court to declare a licence issued to Jaiz by the CBN illegal, null and void. The plaintiff also named Sanusi and the Attorney General of the Federation (AGF) as co-defendants. He asked the court to hold the CBN's guidelines for the regulation and supervision of institution offering non-interest financial services in Nigeria under Islamic commercial jurisprudence, published by a national daily on June 23, last year as ultra vires, illegal, null and void. Ogboji further asked the court to maintain that only the National Assembly can lawfully designate the other banks provided for in the BOFIA Act, chapter B2 L.F.N. 2004 to the exclusion of any other body or institution. But the CBN had asked the court to dismiss the suit on the grounds that the plaintiff had failed to disclose how the licence and issuance of the guidelines has adversely affected him. It argued that Section 33 (1)(b) of the CBN Act empowers the CBN governor to issue licence for the operation of commercial banks. The 1st and 2nd defendants further maintained that Section 66 (b) of BOFI Act gives the CBN the power to issue licences to specialize banks, such as the Jaiz. The court, however, held that under sections 6(b) and 36 (1), the locus of the plaintiff must be proved. He must situate his locus standi within the ambit of the constitution. Litigation like this ought to be brought to the attention of the AGF to give approval to the plaintiff to maintain the action. The court further held that the specialised banks mentioned in the BOFI Act are government banks, such as the Federal Mortgage Bank, Peoples Bank and National Industrial Bank and the act does not contemplate a bank with religious connotation, such as the Islamic banking. Section 10 0f the Constitution says government should not adopt any religion. "The so-called non-interest bank under the guise of Islamic banking has to come by act of the National Assembly. "CBN does not have the power to designate Islamic Bank as specialised bank," Justice Kolawole held.