An expert in Islamic law on banking and finance, Prof. Abdur-Razzaq Abdul-Majeed Alaro, has said expansion financing could help Nigeria and Africa to solve the issues of financial exclusion among their populace.
Speaking during the 1Oth anniversary of the Islamic Crescent Cooperative Society (Iccs) Ltd yesterday in Abuja, Alaro said researches had shown that financial exclusion affected Muslims a lot all over the world.
He said this is due to the mainstream banks engaging in transactions that are forbidden in Islam with Muslims customers not having alternatives.
While noting that the trend is changing with the existence of Islamic cooperatives, banks and micro finances, he said more needs to be done to bring more people into the banking system.
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“More than 90 per cent of products and services that are available in banks are telling you to do what Allah forbids you from doing. If you want a banking product, you must key into the riba or interest-based transaction. That is a no-go area for Muslims. However, today this problem has been solved to a large extent by the availability of banking services, cooperative services, and micro finance services that are all shariah compliant. So, this is what we call financial inclusion.”
While stating that Islamic cooperatives have fulfilled the drive of financial inclusion, he said there is need for them to move into MSMEs financing so as not to become stagnated.
Earlier, the Executive Chairman of Iccs, Shefi’u Kolawole Gbadamosi, said the cooperative was formed to help its members and business owners achieve their personal and commercial goals without compromising their religious belief.
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