Al-Hikmah University Journal

This paper examines modalities and techniques of risks management in the Interest-free banking. The paper also aimed at assessing the basic concepts of risk management, evolution of the Interest-free banking in Nigeria, its mode of operation and some of its unique features. Types of risks peculiar to the interest-free banking and modalities and techniques of their management are also given consideration in the paper. The methodology adopted in this paper is descriptive research based on documents analysis on relevant articles and literatures on the subject matter. The materials used include articles, books, conference papers, journals as well as internet resources. The paper concludes with the suggestions that there should be adequate awareness and orientation on the aim and objectives of risk management in Interest-free banking has giving assurance to the public that their transactions with the banks are saved and protected. Nigerian government should endeavour to give the bank enabling environment to thrive so as to revitalize the nation’s economy from its instability.