Department of Islamic Law

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Browsing Department of Islamic Law by Author "Aishat Abdul-Quadri Zubair"

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    ROLE OF ISLAMIC LAW IN THE EFFICIENT MANAGEMENT OF DEBT IN NIGERIA
    (2023-12-31) Ahmed Abiodun Muhammed-Mikaaeel; Aishat Abdul-Quadri Zubair
    Introduction to The Problem: Nigeria's Real Gross Domestic Product (GDP) stood at N20.33 trillion in the fourth quarter of 2021, growing at a rate of 3.98 percent (year-on-year) in real terms, marking the fifth consecutive quarter of positive growth since the recession of 2020. Despite this positive growth, the economy is said to be in serious crisis. It is therefore shocking to realize that the Nigerian government takes more debt to service the existing ones. This is not sustainable as the country will continue to deepen in debts that will worsen the economic crisis it already finds itself which is against the principle of Shari’ah wealth Management. Purpose: The purpose/objective of this study is to examine the role of Islamic law in the efficient management of debt in Nigeria. To this end, the study seeks to expose the effect of the economic crisis that leads to huge borrowing for Nigeria as a country which is now becoming scary. In the same vein, the study also aims at showcasing that there exists great solution to the Nigerian economic woe under Shari’ah jurisprudence. Methodology:The Methodology employed in this study is purely doctrinal method of legal research. Hence, the study places reliance principally on the available literature by which the study explores relevant materials such as text books, journals and internet facilities. Importantly, the study finds most useful the primary sources of Shari’ah which are the Qur’an and Sunnah as well as the secondary sources which include Qiyas and Ijma’. Findings: The study finds that the economic crisis which Nigeria has found itself as a result of the multiplier effect of excessive public borrowing cannot be divorced from the adoption of the conventional economic system. The result reveals further that Islamic law plays significant roles in the efficient management of debt as was confirmed in the Malaysian Shari’ah compliant public debt management practices. The study proposes, by way of recommendation, the practice of Islamic Wealth Management to cushion the effect of the deficit budgets and the onerous debts on Nigeria and increase investment activities with a view to impacting positively on the country’s GDP. The study is therefore most relevant to the policymakers in the Ministry of Finance, Debt Management Office, as well as the Lawmakers in the country.