Sheikh Ahmad to Tinubu: Invite Islamic finance experts on palliative loans

National Missioner of Ansar-ud-Deen Society of Nigeria, Sheikh Abdulrahman Ahmad Sunday said the recently approved loan facilities as part of the palliatives unveiled by President Bola Ahmed Tinubu excluded the Muslims.

He said no Muslim would subscribe to the loans because of the interest involved, which is against the Islamic injunction and advised the federal government to work with experts in Islamic finance to make the loans available through the instrumentality of Sharia.

Speaking on the sideline of the press conference to mark the centenary celebration of the society, Sheikh Ahmad however described the removal of subsidy as an “inevitable policy of government at this point in time.”

It would be recalled that President Bola Tinubu had recently rolled out several palliatives to provide relief against the biting economic hardship after the subsidy removal from premium motor spirit (PMS) otherwise known as petroleum.

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The palliatives include N75bn loan for the manufacturing sector, N125bn for the MSMEs, among others.

But the national missioner said while he supported moves to subsidise production through the loans, the Muslims are being excluded.

He also stated that he is against giving out handouts as part of the palliatives because such a move has not addressed the macroeconomic imbalances.

“We call on the president to invite experts in Islamic Finance to help make the loans accessible through the instrumentality of the economics of the Sharia that have benefited this country through Sukuk, which is building our infrastructure at no extra cost to the government.

“It is an alternative financing system that is devoid of Riba (usurious interest). So, that is our call. Give Muslims access to these loans by making them compliant to the Sharia. This is not restricted to Muslims. It is open to all who want to enjoy it.”

He said the anchor borrowers’ scheme of the government has not succeeded due to the high rate of defaults occasioned by the usurious interest.

The Islamic scholar however stated that there is a consensus that subsidy of petroleum had to go because it is “Responsible for the gross underdevelopment of Nigeria.”