Microfinance, sustainable development and poverty alleviation in Nigeria: proposal for a Maqasid ash-Shari’ah based (MSB) model

Nigeria is one of the countries having over 50 percent of her population suffering from poverty. Obviously, there have been serious efforts on the part of the government and other stakeholders in Nigeria at combating this socially menacing scourge of poverty. There is no doubt that by the overwhelmi...

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Main Authors:	Adewale, Abideen Adeyemi, Daud, Mustafa
Format:	Conference or Workshop Item
Language:	English
Published:	2010
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/14018/ http://irep.iium.edu.my/14018/1/Microfinance-Sustainable-Development-And-Poverty-Alleviation.pdf

id	iium-14018
recordtype	eprints
spelling	iium-140182013-03-20T02:24:44Z http://irep.iium.edu.my/14018/ Microfinance, sustainable development and poverty alleviation in Nigeria: proposal for a Maqasid ash-Shari’ah based (MSB) model Adewale, Abideen Adeyemi Daud, Mustafa HG1501 Banking Nigeria is one of the countries having over 50 percent of her population suffering from poverty. Obviously, there have been serious efforts on the part of the government and other stakeholders in Nigeria at combating this socially menacing scourge of poverty. There is no doubt that by the overwhelming proportion and dimension, the trends in the incidence of poverty in Nigeria typify an intergenerational transmission given that there has arguably been more of poverty elevation than alleviation, especially when we critically examine the various policies and programs of Nigerian government in the last 25 years. These various policies and programs, however, appear to have discountenanced the relevance of sustainable livelihoods especially as per their financing from the Islamic perspective. This paper, therefore, evaluates both the impact of having access to, and the perception of some Muslim micro entrepreneurs in Ilorin metropolis on the pertinence of the Islamic micro financing alternative, which could serve as a viable economic mechanism and tool for the promotion of growth and Sustainable Development. Using Structural Equation Modeling (SEM), the study revealed that poverty; proxy by items related to the annual average household expenditure is statistically different among those who once had access to informal Islamic microfinance. Hence, micro credit access may be said to help alleviate poverty. This implies that Islamic micro finance albeit on a rather informal manner actually impacts positively on poverty alleviation. In view of this, the appositeness of an Islamic microfinance model based on the Maqasid ash-Shari’ah is advanced as a viable alternative to break away from the shackles of poverty. This study, therefore,without prejudice to the efficacy of conventional micro-financing concluded that Islamic microfinance alternative holds great prospects for poverty alleviation in Nigeria, particularly in the predominantly Muslim states like Kano, Katsina, Sokoto, Zamfara, Bauchi, Yobe, Borno etc. Some of the recommendations made include: the need to integrate Islamic microfinance scheme into the mainstream; enhancing the mass awareness through the print and electronic media on the need for Islamic MFIs; and sincerity on the part of the government to ensure that the criteria for the establishment of Islamic MFIs are not too stringent. 2010 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/14018/1/Microfinance-Sustainable-Development-And-Poverty-Alleviation.pdf Adewale, Abideen Adeyemi and Daud, Mustafa (2010) Microfinance, sustainable development and poverty alleviation in Nigeria: proposal for a Maqasid ash-Shari’ah based (MSB) model. In: 2nd International Conference on Islamic Economics and Finance, 13-15 December, 2010, Langkawi, Malaysia. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Adewale, Abideen Adeyemi Daud, Mustafa Microfinance, sustainable development and poverty alleviation in Nigeria: proposal for a Maqasid ash-Shari’ah based (MSB) model
description	Nigeria is one of the countries having over 50 percent of her population suffering from poverty. Obviously, there have been serious efforts on the part of the government and other stakeholders in Nigeria at combating this socially menacing scourge of poverty. There is no doubt that by the overwhelming proportion and dimension, the trends in the incidence of poverty in Nigeria typify an intergenerational transmission given that there has arguably been more of poverty elevation than alleviation, especially when we critically examine the various policies and programs of Nigerian government in the last 25 years. These various policies and programs, however, appear to have discountenanced the relevance of sustainable livelihoods especially as per their financing from the Islamic perspective. This paper, therefore, evaluates both the impact of having access to, and the perception of some Muslim micro entrepreneurs in Ilorin metropolis on the pertinence of the Islamic micro financing alternative, which could serve as a viable economic mechanism and tool for the promotion of growth and Sustainable Development. Using Structural Equation Modeling (SEM), the study revealed that poverty; proxy by items related to the annual average household expenditure is statistically different among those who once had access to informal Islamic microfinance. Hence, micro credit access may be said to help alleviate poverty. This implies that Islamic micro finance albeit on a rather informal manner actually impacts positively on poverty alleviation. In view of this, the appositeness of an Islamic microfinance model based on the Maqasid ash-Shari’ah is advanced as a viable alternative to break away from the shackles of poverty. This study, therefore,without prejudice to the efficacy of conventional micro-financing concluded that Islamic microfinance alternative holds great prospects for poverty alleviation in Nigeria, particularly in the predominantly Muslim states like Kano, Katsina, Sokoto, Zamfara, Bauchi, Yobe, Borno etc. Some of the recommendations made include: the need to integrate Islamic microfinance scheme into the mainstream; enhancing the mass awareness through the print and electronic media on the need for Islamic MFIs; and sincerity on the part of the government to ensure that the criteria for the establishment of Islamic MFIs are not too stringent.
format	Conference or Workshop Item
author	Adewale, Abideen Adeyemi Daud, Mustafa
author_facet	Adewale, Abideen Adeyemi Daud, Mustafa
author_sort	Adewale, Abideen Adeyemi
title	Microfinance, sustainable development and poverty alleviation in Nigeria: proposal for a Maqasid ash-Shari’ah based (MSB) model
title_short	Microfinance, sustainable development and poverty alleviation in Nigeria: proposal for a Maqasid ash-Shari’ah based (MSB) model
title_full	Microfinance, sustainable development and poverty alleviation in Nigeria: proposal for a Maqasid ash-Shari’ah based (MSB) model
title_fullStr	Microfinance, sustainable development and poverty alleviation in Nigeria: proposal for a Maqasid ash-Shari’ah based (MSB) model
title_full_unstemmed	Microfinance, sustainable development and poverty alleviation in Nigeria: proposal for a Maqasid ash-Shari’ah based (MSB) model
title_sort	microfinance, sustainable development and poverty alleviation in nigeria: proposal for a maqasid ash-shari’ah based (msb) model
publishDate	2010
url	http://irep.iium.edu.my/14018/ http://irep.iium.edu.my/14018/1/Microfinance-Sustainable-Development-And-Poverty-Alleviation.pdf
first_indexed	2023-09-18T20:23:12Z
last_indexed	2023-09-18T20:23:12Z
_version_	1777408244219641856

Microfinance, sustainable development and poverty alleviation in Nigeria: proposal for a Maqasid ash-Shari’ah based (MSB) model

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