ADMINISTRATION

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Browsing ADMINISTRATION by Author "ABDU, ALHAJI IBRAHIM (JAGA)"

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    THE ROLE OF ISLAMIC BANKING SYSTEM.
    (1992-11) ABDU, ALHAJI IBRAHIM (JAGA)
    Prohibition of interest in Islam necessitates that in countries seeking to introduce Islamic economic system, banking and financial practices be organised on a basis other than interest. Research work on t h e subject has proceeded to suggest that the principle of profit sharing offers the best alternative to i n t e r e s t in an Islamic system. S t a b i l i t y in the value of money should be accorded high p r i o r i t y in the Islamic frame of reference because of the unequivocal stress of Islam on honesty and fairness in a l l human dealings and because of the negative impact of inflation on socio-economic justice and general welfare. While i n f l a t i on is incompatible with the goals of an Islamic economy, prolonged recession and unemployment are also unacceptable. In Islamic system, monetary policy in Islam must therefore aim at a high rate of economic growth with full employment. The requirement to attain material prosperity within f ramework of Islamic values necessitates that it should not be attained through the production of vii inessential and morally questionable goods and services, should not lead to an exessive and overly rapid use of God given resources at the expense of future generations and should not harm present or future generations by degenerating the moral or physical environment. Since Islam abhors Riba (interest), it is natural that abolition of interest should be the corner stone of all efforts at recognising th economic system on the basis of Shari'ah. Prince Mohammed Al-Faysal Al-Saud visited Nigeria in 1983 to explore the means and possibility to establish in the country an interest free Islamic Bank on the pattern of Sudan, which unfortunately could not be possible due to our selfish and UnGodly love of Riba (interest). However, neighbouring countries in West Africa like: Gabon, Mali, Senegal, Chad, Niger, Sierraleone, Guinea, Upper Volta, Tego etc have already established interest free Islamic Banks very successfully. Again countries in the world like; Sudan, Saudia, Egypt, Iran, Iraq, Libya, Algeria, Somali, Pakistan, Afghanistan, Turkey, India, Morocco, Tunisia, Mauritania and very many other countries have multiples interest free Islamic Eanks in their countries over decades. My dissertation however, explained in details the nature and relevance of Islamic Banking System to the Nigerian Populace in particular and the world in general, my prayer is that Nigerian Government would have second though and establish the interest free Banks in the country for the benefits of all.