- Sheikh Abdulrahman Ahmad criticized loan facilities excluding Muslims due to interest, suggesting Sharia-compliant loans and endorsing Sukuk financing
- He urged the government to involve Islamic finance experts and address macroeconomic imbalances for equitable palliative measures
On Sunday, Sheikh Abdulrahman Ahmad, National Missioner of the Ansar-Ud-Deen Society of Nigeria, said that the recently approved loan facilities as part of President Bola Ahmed Tinubu’s palliatives excluded Muslims.
He stated that no Muslim would subscribe to the loans because of the interest involved, which is against Islamic law. He advised the federal government to collaborate with Islamic finance experts to make the loans available through Sharia.
Speaking on the sidelines of the press conference commemorating the society’s centenary, Sheikh Ahmad described the removal of subsidies as an “inevitable policy of the government at this point in time.”
It will be remembered that President Bola Tinubu recently rolled out several palliatives to provide relief from the severe economic hardship caused by the removal of subsidies from premium motor spirit (PMS), also known as petroleum.
Among the palliatives are a N75 billion loan for the manufacturing sector and a N125 billion loan for MSMEs.
However, the national missioner stated that Muslims are being excluded while he supports efforts to subsidise production through loans.
He also stated that he opposes handouts as part of palliative measures because they do not address macroeconomic imbalances.
We call on the president to invite experts in Islamic Finance to help make the loans accessible through the instrumentality of the economics of the Sharia that have benefited this country through Sukuk, which is building our infrastructure at no extra cost to the government.
It is an alternative financing system that is devoid of Riba (usurious interest). So, that is our call. Give Muslims access to these loans by making them compliant to the Sharia. This is not restricted to Muslims. It is open to all who want to enjoy it.
He said the anchor borrowers’ scheme of the government has not succeeded due to the high rate of defaults occasioned by the usurious interest.
The Islamic scholar, however, stated that there is a consensus that petroleum subsidy had to go because it is “Responsible for the gross underdevelopment of Nigeria.”
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