APPLICATION OF ISLAMIC FINANCING OPTIONS IN THE OPERATIONS OF YOBE STATE UNIVERSITY COOPERATIVE MULTI-PURPOSE SOCIETY (YSU-CMS)

Adam MUhammad Abubakar(1*),


(1) Department of Islamic Studies, Yobe State University
(*) Corresponding Author

Abstract

According to Nigerian Cooperative Societies Act, (2004), a Cooperative Society is a voluntary association of individuals, united by common bond, who have come together to pursue their economic goals for their own benefits. The Islamic co-operative finance system involves coming together to raise halal fund by people of similar ideology and orientation, who contribute their gains in monetary terms to establish a business on profit and loss sharing basis and give loans to members based on mutual understanding without attaching any form of interest. The Yobe State University Cooperative Multi-Purpose Society (YSU-CMS) aims at promoting socio-economic well-being of its members and providing them with economically viable ventures and loan opportunities. This paper aims at assessing the operations of  YSU-CMS in the light of the general principles of Islamic Finance, in order to find out whether it is in conformity with the Islamic teachings or not? In addition, it highlights the general principles that the Islamic co-operative finance system should follow. The researcher adopted analytical and descriptive approaches in this study. The main findings of the paper have shown that some components of YSU-CMS are in conformity with the dictates of Sharia, while others vary. It also revealed that the application of Islamic modes of financing from the angles of Islamic microfinance (ISMF) operations provide base upon which YSU-CMS products can be converted into Shari’ah – compliant products.

Keywords

YSU-CMS, Cooperative Society, Microfinance and Islamic Finance

Full Text:

PDF

References

Ahmad, S. (2006). Islamic Banking Finance and Insurance: A Global overview, Kuala-Lumpur, ASN Publishers.

Badamasi, S. and Dahiru A. (2017) Islamic Co-operative in Nigeria: An Untapped Economic Development Tool

Bello, (2017) Nigeria: Interest-free cooperative: A reliable source of finance https://halalfocus.net/nigeria-interest-free cooperative-a-reliable-source-of-finance/

Chaudhry, M. S. (1999), Fundamentals of Islamic Economic System. First Edition, Burhan Education and Welfare Trust. Lahore, Pakistan.

Ekpenyong, E. (2017) Procedure For Registration Of Cooperative Society In Nigeria http://www.mondaq.com/Nigeria/x/582630/Industry+Updates+Analysis/Procedure+for+Registration+of+Cooperative+Society+in+Nigeria, Retrieved 24th August, 2019

IIBI, (2019). Glossary of Financial Terms. United Kingdom https://www.islamic-banking.com/explore/glossary/glossary financial-terms-s retrieved 30th August, 2019

ILO, (2002) Promotion of Cooperatives Recommendation, (No.193). https://www.ilo.org/global/topics/cooperatives/lang--en/index.htm Retrieved 22nd August, 2019

Marx, M. and Seibel, H. (2012). The Evolution Of Financial Cooperatives In Nigeria: Do They Have A Place In Financial Intermediation? Oluyombo, O. (ed) Cooperative Finance in Developing Economies, Lagos, Soma Prints Limited pp 8-23

Munker, H. H. (2013). Worldwide regulation of cooperative societies-an overview. Euricse Working Paper n. 53/13. Retrieved on 31/12/2014.

Mustafa, D. and AbdulSalam, H. (2017). Cooperatives in Muslim Countries: Exploring the Role of Islamic Finance for Sustainable Development

Nigerian Cooperative Societies Act, LFN 2004.

Nwagbara, C. (2018), “Relevance of Cooperative Societies to the Nigerian Economy – A Legal Approach” International Journal of Innovative Legal & Political Studies 6(2):38-56.

Obaidullah, M. (2006): Islamic Financial Services, Islamic Economics Research Center, King Abdulaziz University Jeddah. Sabiq, S. (1983). Fiqh Al-Sunnah. Dar Al-Fikr: Lebanon

Sabeeq, S. (1995). Fiqhu Al-Sunnah. Dar Al-Fikr: Lebanon

Sadeq, A. M. (1990). Economic development in Islam. Selangor: Pelanduk Publications.

Sanusi, L.S. (2011). Islamic Finance in Nigeria: Issues and Challenges: A Lecture delivered At Markfield institute of higher education (mihe), leicester, uk By Sanusi lamido sanusi (con) Governor, central bank of nigeria 17 june 2011.

Usmani, T. (2006). Islamic Finance – Musharakah & Mudarabah. Karachi: Darul Uloom. Jamia Darul Uloom.

Zuhaily, W. (1985). Al-Fiqhu Al-Islam wa Adillatuh. Dar Al-Fikr: Lebanon

Article Metrics

Abstract : 60 times
PDF : 32 times

Refbacks

  • There are currently no refbacks.


View My Stats