‘How Islamic finance can stimulate economic recovery’

Aerial view of buildings and markets on Lagos Island.

As regards the economic situation in the country and the quest for solution, Islamic Finance is believed could redeem it due to the ethical and moral values within the Islamic banking system.

The President of the organization, Alhaji Sulaimon Yusuf, who spoke at the Muslim Association of Nigeria (MAN) 34th Triennial National Conference in Lagos, said Islamic finance playing an important role in promoting socially desirable investments, economic empowerment, employment opportunities and resuscitation of real sector of economy.

He said: “We have confidence in the economic packages and policies of the present administration and feel that a lot more needs to be done to alleviate the suffering of the masses”

Dr Tajudeen Yusuf said the theme of the event is timely and apt. Nigeria are quick concern about the state of affair economically and they want Islamic perspective because it the only instrument that can rejuvenate, redevelop and revitalize the nation’s damaged economy
“ It is Allah our creator that designed the platform for us. The best proof is the recent One hundred billion Sukuk bond lunched by the Federal government of Nigeria which is just a tip of the ice bag in all the benefit Nigeria as a Nation can benefit from Islamic Finance”

He urged Muslims to open an account with existing financial institutions so that Islamic finance will grow and the awareness will spread.

He said the opportunities in Islamic finance is not religious bias, you can be a non Muslim you can participate in Islamic Finance, you will be treated as a Muslim”We should all support Islamic Finance it is will grow Nigeria economy.

He urged Nigerians to tap the benefits in Islamic Finance instead of allowing religions bigotry to prevent us from reaping the benefit of Islamic Finance. “Conventional will not give loans to people that are not credit worthy but under Islamic bank it is risk shearing, the bank see you as partner if the business failed you will only loose your effort while the bank loses the capital and you are not attach to the bank forever”.

Justice Taofiqat Abdullahi-Oyekan of a Lagos high court said if Nigerians continue to tap into Islamic banking technology and use the Islamic principle base on the teaching of Islam, Nigeria economy will boom. “We will reap a lot from Islamic Finance, it is the surest of all Financial Institutions path that we have been treading.”

She said the principle of weaferism in Islam should be adopted along with the economy growth, with that poverty will be eradicated in the country. Awearnes should be made to sensitize people about benefit of Islamic banking.

Sterling Bank’s Non-Interest Banking (NIB) Group Head, Dr. Basheer Oshodi said there is gradual economic recovery in Islamic Banking but there is no development in the sense that poverty must be reduce, inequalities must be reduce and unemployment must be reduced if we fail to achieve that we have achieve nothing.
He said Islamic Finance could solve Nigeria economy problems with support from Federal government. “It prohibit interest but we can do partnership transaction base on equity side, on job side we can do sales and lease. When Islamic Finance is practice properly and more people apply for it, Nigeria economy will boost.

Oshodi urged the Federal government to support Islamic banking because funds from commercial bank cannot be sufficient.” In the country like Sudan we see a case where the Central Bank of Sudan give loans of international fund to Islamic Bank to do equity base transaction. This joint venture capital was able to develop successful. It is when we have such patient capital, injected in Islamic Banking then we can see true impact of Islamic banking”.

He appeal to Bank of industry, development bank of Nigeria, Standard Mortgage, all of them should have Islamic Finance desk so that some of this intervention funds they are given will get to non-interest banks to develop faster.

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