Ansar-ud-Deen missioner advises Tinubu on making palliative loans Sharia-compliant
In response to President Bola Ahmed Tinubu’s recent palliatives, Sheikh Abdulrahman Ahmad of the Ansar-ud-Deen Society of Nigeria expressed concerns that the approved loan facilities excluded Muslims due to the involvement of interest, which is against Islamic principles.
The National Missioner suggested that the federal government collaborate with experts in Islamic finance to ensure the loans are accessible to all citizens through Sharia-compliant means.
Sheikh Ahmad emphasized that while he supported subsidizing production through loans, he objected to the handouts in the palliatives, stating they did not address the country’s macroeconomic imbalances.
Instead, he advocated for leveraging the economics of Sharia, which has successfully benefited Nigeria through initiatives like Sukuk, enabling infrastructure development without incurring usurious interest.
The National Missioner also pointed out that the anchor borrowers’ scheme had encountered challenges with high default rates due to the presence of usurious interest.
He urged the government to take this into account when designing future economic initiatives.
In agreement with the removal of subsidy on petroleum, Sheikh Ahmad described it as an “inevitable policy of government at this point in time,” attributing it to the gross underdevelopment of Nigeria.
He called on President Tinubu to invite Islamic finance experts to help design palliative loans that align with Sharia principles, making them accessible to all citizens, regardless of their religious background.
