The Bank of Ghana (BoG) has inaugurated the Non-Interest Financial Advisory Council (NIFAC) as part of efforts to support the development of non-interest banking and other related financial products in Ghana.

The Council will advise the central bank on how non-interest financial institutions should be regulated and supervised, while helping to build a stable and sustainable non-interest finance ecosystem in the country.

NIFAC is chaired by Prof. Bashir Aliyu Umar, with Dr Yussuf Adany Al-Badani, Dr George Baah-Danquah, Adishetu Hamidu Naabo and Samuel Gameli Gadzo serving as members.

Speaking at the inauguration, Bank of Ghana Governor Dr Johnson Asiama said the establishment of the Council is an important step in strengthening the governance and regulatory framework for non-interest banking in Ghana.

According to him, the Council will help ensure that products introduced under the non-interest banking framework are properly structured, transparent and designed in a way that customers can clearly understand.

Dr Asiama said interest in non-interest finance has been growing among both financial institutions and the public, making it necessary to put the right structures in place before the sector expands further.

He believes non-interest finance could also help widen financial inclusion by giving Ghanaians access to alternative financial products that suit different needs and values, without compromising the stability of the financial system.

However, the Governor cautioned financial institutions against assuming that a product is automatically acceptable simply because it is described as non-interest.

“Products should not be accepted merely because they carry a non-interest label. Their structure, their risks, their costs, their obligations, these have to be transparent and capable of being understood by customers,” Dr Asiama said.

Beyond the Bank of Ghana, the Council will also provide advisory support to the Securities and Exchange Commission (SEC) and the National Insurance Commission (NIC) as Ghana develops a broader non-interest finance ecosystem.

The move could pave the way for more alternative banking, investment and insurance products in Ghana, while giving regulators a framework to ensure customers understand the costs, risks and obligations involved.