Dabarako, Fatima Muhammad2026-04-182026-04-182020https://repository.iou.edu.gm/handle/123456789/503This study aims at finding the stability of Islamic banking in Nigeria through a study of Jaiz bank (the only fully fledged Islamic bank in Nigeria), over a period of seven years (2012 to 2018). The study uses Z-Score as a proxy for the stability of the bank. Up to 55% of studies on stability adopted the use of Z-score. Financial ratios, were adopted to further examine critically the bank's performance. Three categories of ratios were considered (Profitability ratios, Liquidity ratios and efficiency ratios). Tables and graphs were also used to make the bank's performance readable at a glance. The study further makes a Comparison between Jaiz bank and five other conventional banks. An analysis was made on the manner of interaction between the ROA of each bank and the Macroeconomic Variables (ΔGDP and inflation). A further Comparison of bank stability (SB) figures was made. The study found Jaiz bank to be consistent with theoretical studies that expects a positive correlation of profitability with ΔGDP and a negative correlation with inflation. The five conventional banks generally do not reflect the same. Some responded in the same manner as Jaiz bank at some point in time, while at other times the reverse occurred. And some others did not seem to have a clear pattern. Rather, they fluctuated greatly. However, the bank stability figures show that conventional banks are more stable in Nigeria. According to this research, the major challenges of Islamic banking in Nigeria is that of an unhealthy economy. Accordingly, Islamic banking is expected to flourish with a more stable economy because the bank variables are quite robust, and growth of the bank's assets are quite rapid.Thesis