Shariah Board Oversight, Supervisory Authority, and Regulatory Frameworks: A Comparative Study of Islamic Asset Management in Nigeria and Malaysia

This study critically investigated the comparative roles and responsibilities of Shariah boards in asset management firms in Nigeria and Malaysia. The study addressed growing concerns about the effectiveness, independence, and supervisory authority of Shariah governance in Islamic financial institutions. The study used a comparative quantitative research design. It administered structured questionnaires to 180 respondents, including Shariah Board members, compliance officers, directors, senior management staff, and supporting institution members, from selected Islamic asset management companies in both jurisdictions. The study used descriptive statistics, independent-samples t-tests, and multiple regression analysis. The overall Regression R2 = .674, alpha = 0.87. and p < .001). The results showed that Malaysian Islamic asset management companies had stronger Shariah governance frameworks in governance transparency, supervisory authority, compliance monitoring, and institutional confidence than Nigerian companies. The study also found that regulatory quality, governance disclosure standards, institutional coordination, and supervisory independence significantly influenced Shariah governance effectiveness. The study found that good Shariah governance required a robust institutional and regulatory structure to support autonomous, accountable, and consistent operations. The results offer valuable policy recommendations to strengthen Islamic finance governance frameworks in developing countries, particularly in Nigeria's nascent Islamic asset management industry.