ISLAMIC BANKING AND ECONOMIC DEVELOPMENT IN NIGERIA

ISLAMIC BANKING AND ECONOMIC DEVELOPMENT IN NIGERIA

Abstract

The methods adopted in data collection for this study are Islamic textbooks, journals, relevant seminar papers which are referred to as secondary data while those I obtained through personal interview with Islamic scholars and some Conventional banks personnel Formed the primary source which I considered in writing project. In essence, both primary and secondary data were utilised. (2) The study revealed that any interest or fixed return is an Offence against Allah and morals because one party bore more risk or loss or less security of making profit than the other. It also revealed that there are potentials for and vability for the establishment of Islamic banks in Nigeria. (3) Another finding was that Islamic banking would provide a ground for savings and investment which would not only be untainted with interest but yield profit, leading to steady ecnomic development. In view of the adverse effect of Inerest, most Nigerians are not only Interested in Islamic banking but are prepared to bear the inconveniences and difficulties thai could bo unavoidable in the transitionary phase of change over from conventual banking system. It was observed that Islamic banks strive always to raise the standard of living of the people by closing the gap between the rich and the poor. (4) Growth in Population, conspicuous consumption by the few rich high interest rate, high level of corruption, poverty of natural endowment and waste all combine to make resouces required for economic growth and development more and more scarce as we approach the end of this millennium. The need to make more efficient use of our scarce resources, in particular, call for the management of our performance (through the principle of IslamicBanking). Good performances results fromcareful planning, and committed implementation and monitoring of the plan’s execution. (5) All shareholders are becoming more demanding of business organisations. Shareholders want more dividends and/or capital appreciation. Labour is unrelenting in calling for higher wages and belter conditions of work. The communities ordinarily expect increasing commitment to the social responsibilities of business organisation. As all these can only and best achieved through the establishment of Islamic Banking. (6) This desertation explains in details the nature of Islamic banking and Nigeria economic development and its relevance to Nigeria in particular and the world in general, my prayer is that Nigeria Government, Investors, Academics, Bankers, and other Financial Operators, Scholars and Students, would have a second thought and estalish the interest free banking in the country for the benefits of all.

TABLE OF CONTENT

Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi

CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39
Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69

ISLAMIC BANKING AND ECONOMIC DEVELOPMENT IN NIGERIA