A senior lecturer at Dr Sikiru Adetona College of Education Omu Ijebu, Ogun State, Dr. Asif Olatubosun Azeez, has declared that zero interest credit facilities if given to Nigerian farmers and operators of Small, Medium Entreprises (SMEs) could be the quick pathway out of the nation’s current economic hardship.
Dr.Azeez added that the zero interest loan approach if adopted would also encourage youths to go into farming, boost food production and security as well as create employment.
The lecturer who is also the National President of Al-Hayat Relief Foundation an Islamic Cooperative Society, spoke to The Daily Crucible on the heels of the pervasive current economic hardship in the country, saying Islamic zero interest rate at this critical will be helpful to galvanize farmers and SMEs in order to overcome the economic hardship and challenges associated with the rapid free fall of Naira.
He explained that the organization was working towards creating a foundation that would be generating money while the proceeds of the endowment would also be used to carter for the indigents in the society.
He urged the government to collaborate with Islamic Organizations like Al-Hayat relief foundation and route many of the interventions through it to cushion the effects of the current economic downturn so as to get the needed results, noting that the organization boasts of over 20,000 registered members.
He further stated that the fall in the Naira was due to the collapse of SME’s structure in the country adding that they need the financial and more enabling environment to succeed.
The president of the foundation pointed out that part of the challenges faced by the organization is how penetrate the northern region of the country so as to help reduce the poverty rate through zero interest rate that will have significant impact on the nation’s gross domestic products[GDP].
“Business is the life wire of Al-Hayat. The foundation engages in halal businesses since it does not take interests. The business activities of all the branches conform with the principles laid down in fiqh Muʿamalah”.
The expert in Islamic banking and finance also noted that for Islamic banking to contribute its quota meaningfully to the nations economy, the department for Islamic banking at the Apex bank should be allow to grow and continued as well as other areas of IsIam finance like that micro insurance.
He noted that the foundation is an interest-free cooperative society formed 27 years ago to rescue our Muslim brothers who were often forced to take loans from money lenders and charged exorbitant interests. “More so, we observed that the practice was that, after securing the loans, the lenders would not want the loans to be paid back rather preferred the interest to accumulate.
He also urged the government to fully support the Small Medium enterprise so as to boost the nation gross domestic products and limit reliance on foreign goods.
Also speaking, the General Manager of the Foundation, Alhaji Waidi Raimi said the foundation which is founded to cater for the interest of Muslim brothers and Sister’s have branches in all the Southwest States including Kwara.
He noted that as a result of people requests for more branches, Al -Hayat has grown into a household name in Sharīʿah principled and microfinance activities.
He pointed out that the organization adopts the zero interest for its members based on the Islamic injunction.
